The UK government has published its response to the consultation on implementing the new rules about subscriptions in the Digital Markets, Competition and Consumers Act 2024. The main headline is that the regime will not come into force until the spring of 2027.
The DMCC Act provides new rights for consumers so that they have clear information before they sign up for a subscription and receive regular reminders, particularly before trials or 12 month+ contracts auto-renew. These provisions build on and expand the existing protections for consumers in the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (CCRs).
Secondary legislation is required to implement the new regime. The government says that it will bring forward regulations covering:
initial cooling-off period refunds. It aims to make sure that for contracts covered by the new rules, initial cooling-off rights and refunds are consistent with the CCRs. This includes retaining the waiver for digital content to protect businesses from "binge and cancel" behaviour. This aims to maintain existing consumer protections and provide consistency for both consumers and businesses.
renewal cooling-off period refunds. For contracts that come within the scope of the new rules, consumers have 14 days after a trial or 12 month+ contract auto-renews to cancel and receive a full or proportionate refund. This aims to make sure that consumers are not out of pocket if they miss the auto-renewal date, and proportionate refunds allow businesses to be compensated for the proportion of the contract supplied.
charitable memberships. The new rules exclude charitable cultural and heritage memberships from the subscription regime. Charities were concerned that complying with refund requirements would prevent them from claiming Gift Aid, as the Gift Aid rules do not allow Gift Aid to be claimed on payments subject to refunds.
information and notices. Requirements for information and notices will be coherent and consistent. This will make it easier for businesses to manage and consumers to make informed decisions and take appropriate action.
technical operational detail. The government says that the consequences and remedies for breaches will be fair and the technical operation of the regime will be consistent with the CCRs where possible. This aims to provide for a clear, fair and functioning regime that protects consumers from harm and has safeguards, so traders are not unfairly penalised.
The government will legislate when parliamentary time allows, and it anticipates that the regime will commence in spring 2027. It will also publish guidance to support business implementation.
Watch this space for more detailed information and events about the new regime. If you have any questions, please get in touch with your usual contact or consult our Consumer Law Hub.
