Subscription Contracts: Right to Cancel

Lord Clement-Jones Excerpts

Tuesday 2nd December 2025 Lords Chamber

[Lord Leong (Lab)]

The noble Lord will know that, under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, consumers already have a cooling-off period for distance contracts, so this is not new for the sector. The digital content waiver is long established, and most charitable memberships are service contracts, not digital content. We consulted on extending the waiver, as that would reduce consumer rights. Having said that, gambling is excluded due to the existing specialist regulations. We recognise the concerns raised by charities and heritage organisations about potential misuse and will continue to work closely with charities as we finalise the secondary legislation.

[Lord Clement-Jones (LD)]

My Lords, Section 267 gives the Government the clear ability to use the regulation-making powers to recognise the specific circumstances of particular services, such as streaming, charitable memberships and, of course, the news media. Do the Government intend to make distinctions between those sectors? If so, will the Government make sure that streaming services, the charitable sector and, indeed, the news media are protected from early termination?

[Lord Leong (Lab)]

The noble Lord makes an interesting point. Let us look at the policy. We are talking about unwanted subscriptions, which account for some £1.6 billion a year. This Act will save consumers some £14 a month, which is about £147 million a year. As it stands, charities have to comply with consumer law irrespective of charitable status. Companies, especially digital service organisations, have the legislation that is currently in place, so that will stay as it is. The cooling-off period under the new Act is just an extension from distance contracts to in person.