Legislation – Digital Markets, Competition and Consumers Act 2024

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Part 4Consumer rights and disputes

Chapter 2Subscription contracts

Cancellation of contracts under this Chapter: further provision

267Cancellation of subscription contract: further provision

(1)

The Secretary of State may by regulations make provision—

(a)

about the exercise of the rights of a consumer to cancel a subscription contract under this Chapter;

(b)

about the consequences that follow a consumer exercising such rights;

(c)

extending a cooling-off period in such cases, and to such extent, as the regulations may specify.

(2)

Regulations under subsection (1)(a) may include provision—

(a)

requiring a right to cancel to be exercised before the end of a specified period;

(b)

imposing other conditions or restrictions on the exercise of a right to cancel (for example, provision that a consumer may lose the right to cancel a subscription contract during a cooling-off period if they choose to be supplied with digital content or services under the contract during that period).

(3)

Regulations under subsection (1)(b) may include provision—

(a)

setting out the extent to which a consumer’s liability for payments that have arisen under a cancelled subscription contract is extinguished;

(b)

as a consequence of provision made under paragraph (a), requiring a trader to refund a consumer for payments the consumer has made under the contract;

(c)

treating the consumer as having paid for goods, services or digital content received under a cancelled subscription contract;

(d)

about the trader’s right to recover goods or digital content that have been supplied under a cancelled subscription contract;

(e)

setting out the consequences of a consumer—

(i)

bringing a subscription contract to an end at a time when the consumer has one or more rights to cancel the contract under this Chapter;

(ii)

cancelling a subscription contract at a time when the consumer has more than one right to cancel the contract under this Chapter.

(4)

Provision under subsection (3)(a) and (b) may secure the result (for example, in cases where a consumer has been supplied with digital content or services under a contract before it is cancelled during a cooling-off period) that—

(a)

the consumer remains liable (partly or fully) for payments falling due before the cancellation of the contract, and

(b)

the consumer is entitled to a reduced or no refund.

(5)

Provision under subsection (3)(e)(ii) must secure the result that, unless the consumer chooses otherwise, the consumer is to be taken to exercise the right to cancel under this Chapter that results in the most advantageous remedy to the consumer (and the regulations may include provision for determining what remedy is “most advantageous” to a consumer in different descriptions of case).

(6)

Before making regulations under subsection (1)(c), the Secretary of State must consult such persons as the Secretary of State considers appropriate.

(7)

The following regulations under this section are subject to the affirmative procedure—

(a)

the first regulations to be made under this section;

(b)

any other regulations under this section that include provision within subsection (1)(c).

(8)

Regulations under this section to which subsection (7) does not apply are subject to the negative procedure.