Digital Markets, Competition and Consumers Act: Subscriptions Implementation Consultation

Monday 18th November 2024 Written Statements

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

The Department for Business and Trade has today published a consultation called “Consultation on the implementation of the new subscriptions contracts regime”.

The consultation seeks views on provisions to be made in secondary legislation to set out how the regime operates and is related to the Digital Markets, Competition and Consumers Act, which received Royal Assent on 24 May 2024.

Chapter 2 of part 4 of the Act establishes rules for subscription contracts between traders and consumers. The purpose of the measures is to protect consumers from being trapped in unwanted subscription contracts. The new rules in the Act ensure that consumers:

Have clear information before signing up to a subscription;

Receive reminders about their ongoing subscriptions;

Have a 14-day period to cancel after a subscription’s free or discounted trial period automatically rolls on to a full price period, or a subscription auto-renews on to a 12-month or longer period; and

Can exit a subscription generally as easily as they signed up, including being able to cancel online if they signed up online.

Before the new rules come into force, secondary legislation is needed. The consultation will ensure that the subscription regime is effectively implemented in line with the objectives of the Act. The consultation asks stakeholders to comment on a number of key proposals, including how returns and refunds work if a consumer exercises a statutory cancellation right, the extension of cooling-off periods, and how information notices must be provided.

The consultation will be open for 12 weeks and the Government will publish our response at a future point. A copy of the consultation will be placed in the Libraries of both Houses and published on gov.uk.

[HCWS223]