Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

Part 4Consumer rights and disputes

Chapter 2Subscription contracts

Introduction

253Overview

(1)

This Chapter—

(a)

imposes duties on traders in relation to subscription contracts,

(b)

provides rights for consumers if those duties are breached, and

(c)

provides rights for consumers to cancel subscription contracts during cooling-off periods.

(2)

Sections 254 and 255 set out what is a “subscription contract” for the purposes of this Chapter.

(3)

Sections 256 to 261 impose duties on traders in relation to subscription contracts.

(4)

Sections 262 and 263 provide rights for consumers to cancel subscription contracts if traders breach those duties.

(5)

Sections 264 to 266 provide rights for consumers to cancel subscription contracts during cooling-off periods.

(6)

Section 267 confers powers to make further provision about the cancellation of subscription contracts under this Chapter.

(7)

Sections 268 to 271 make provision for the offence of failing to provide information about cooling-off rights.

(8)

Sections 272 to 281 contain miscellaneous provisions in relation to this Chapter.

254Meaning of “subscription contract”

(1)

For the purposes of this Chapter, a subscription contract is a contract between a trader and a consumer—

(a)

for the supply of goods, services or digital content by the trader to the consumer in exchange for payment by the consumer,

(b)

to which either or both of subsections (2) and (3) apply, and

(c)

which is not an excluded contract (see section 255).

(2)

This subsection applies to a contract if it contains terms which have the effect of providing—

(a)

for an automatically recurring, or continuing, supply of goods, services or digital content to the consumer for an indefinite period or a fixed period,

(b)

for the consumer to automatically incur liability for each supply, or recurring liabilities for the continuing supply, and

(c)

a right for the consumer to bring the contract to an end.

(3)

This subsection applies to a contract if it contains terms which have the effect of providing—

(a)

for a supply of goods, services or digital content to a consumer free of charge, or at a rate specified in the contract (the “original rate”), for a period specified in the contract,

(b)

for the consumer to become automatically liable for payments, or payments at a rate higher than the original rate, for supplies after that period (including where the trader has an option to impose a charge or a higher charge after the end of the period), and

(c)

a right for the consumer to bring the contract to an end before such liability is incurred.

(4)

In this Chapter, references to a consumer’s right to bring a subscription contract to an end are references to a right provided under the contract which—

(a)

in the case of a contract for a fixed period, may be exercised to bring the contract to an end before the end of the fixed period;

(b)

in any case, may be exercised without the consumer incurring any penalty which is more than nominal,

and include references to a right that is expressed in terms of a right to stop a subscription contract from automatically renewing or continuing or any other similar expression.

255Excluded contracts

(1)

A contract is an excluded contract for the purposes of this Chapter if, and to the extent that, it is of a description set out in Schedule 22.

(2)

The Secretary of State may by regulations amend Schedule 22 so as to add, remove or modify a description of a contract.

(3)

The power under subsection (2) includes power to provide for a contract to be an excluded contract—

(a)

generally for the purposes of this Chapter, or

(b)

only for such purposes of this Chapter as are specified.

(4)

Regulations under subsection (2) are subject to the affirmative procedure.

(5)

See section 275(4) to (8) for how this Chapter applies in relation to a contract that—

(a)

was an excluded contract at the time it was entered into, and

(b)

on subsequently ceasing to be an excluded contract, becomes a subscription contract.

Duties of traders

256Pre-contract information

(1)

Before a trader enters into a subscription contract with a consumer, the trader must—

(a)

give to the consumer the information set out in Part 1 of Schedule 23 (“key pre-contract information”), and

(b)

give, or make available, to the consumer the information set out in Part 2 of Schedule 23 (“full pre-contract information”).

(2)

The duty imposed by subsection (1) must be carried out—

(a)

as close in time to entering into the contract as is practicable,

(b)

in accordance with subsections (3) and (4), and

(c)

in accordance with any other requirements specified in regulations under section 277(1)(a).

(3)

Key pre-contract information must be given under subsection (1)(a) in accordance with the following requirements—

(a)

it must all be given together;

(b)

it must be given separately from the full pre-contract information and any other information;

(c)

in relation to a contract entered into in person, it must be given in writing and on a durable medium;

(d)

in relation to a contract entered into online and remotely (but not orally), it must be given in writing and in such a way that the consumer is not required to take any steps to read the information, other than the steps the consumer must take to enter into the contract;

(e)

in relation to a contract entered into orally and remotely, it must be given orally.

(4)

Full pre-contract information must be given, or made available, under subsection (1)(b) in accordance with the following requirements—

(a)

it must all be given, or made available, together;

(b)

in relation to a contract entered into in person, it must be given in writing and on a durable medium.

(5)

The duty under subsection (1)(b) to give, or make available, full pre-contract information applies in relation to the information set out in paragraphs 14 to 28 of Schedule 23 only to the extent that the information is applicable to the contract and not already apparent from the context.

(6)

For the purposes of this section, information is made available to a consumer only if the consumer can reasonably be expected to—

(a)

know how to access it, and

(b)

be able to access it;

(7)

For the purposes of this Chapter—

(a)

references to a contract being entered into in person are references to it being entered into in the simultaneous physical presence of the trader and the consumer;

(b)

references to a contract being entered into remotely are references to it being entered into without the simultaneous physical presence of the trader and the consumer.

(8)

The Secretary of State may by regulations amend Parts 1 and 2 of Schedule 23 so as to add, modify or remove descriptions of information.

(9)

Regulations under subsection (8) are subject to the affirmative procedure.

257Pre-contract information: additional requirements

(1)

Subsections (2) and (3) apply in relation to a subscription contract entered into online.

(2)

The trader must ensure that the final step which the consumer is required to take to enter into the contract involves the consumer expressly acknowledging that the contract imposes an obligation on the consumer to make payments to the trader.

(3)

The trader must ensure that the information mentioned in subsection (4) is given to a consumer—

(a)

in writing and in such a way that the consumer is not required to take any steps to read the information, other than the steps the consumer must take to enter into the contract, and

(b)

in accordance with any other requirement specified in regulations under section 277(1)(a).

(4)

The information referred to in subsection (3) is—

(a)

whether there are any restrictions on the delivery of the product to be supplied under the contract, and

(b)

which means of payment are accepted in relation to the product.

(5)

If the trader does not comply with subsection (2), the consumer is not bound by the subscription contract.

(6)

Subsection (7) applies in relation to a subscription contract entered into orally and remotely.

(7)

If a trader contacts the consumer, the trader must, from the outset, disclose—

(a)

the trader’s identity,

(b)

where applicable, the identity of the person on whose behalf the trader is making contact, and

(c)

the commercial purpose of making contact with the consumer.

(8)

In cases where—

(a)

the contract has been entered into in person, and

(b)

the consumer has signed the contract,

the trader must give to the consumer a copy of the signed contract immediately after the consumer has signed the contract.

(9)

In cases where full pre-contract information has not been given under section 256(1)(b) in writing on a durable medium before the contract is entered into, the trader must give the consumer that information in writing on a durable medium as soon as reasonably practicable after the contract has been entered into and—

(a)

where goods are to be supplied under the contract, before the supply of any goods;

(b)

where services are to be supplied under the contract, before the supply of any service.

258Reminder notices

(1)

Where a trader enters into a subscription contract with a consumer that does not include a concessionary period, the trader must give to the consumer a notice (referred to in this Chapter as a “reminder notice”) in respect of each renewal payment that relates to the end of a relevant six-month period.

(2)

A “relevant six-month period” for the purposes of subsection (1) is—

(a)

the period of 6 months beginning with the day after the day on which the contract was entered into, and

(b)

each subsequent period of 6 months beginning with the day after the day on which the consumer last became liable for a renewal payment in respect of which a reminder notice was required under subsection (1).

(3)

Where a trader enters into a subscription contract with a consumer that includes a concessionary period, the trader must give to the consumer a reminder notice in respect of—

(a)

the first renewal payment for which the consumer will become liable under the contract, and

(b)

each subsequent renewal payment that relates to the end of a relevant six-month period.

(4)

A “relevant six-month period” for the purposes of subsection (3) is each period of 6 months beginning with the day after the day on which the consumer last became liable for a renewal payment in respect of which a reminder notice was required under subsection (3).

(5)

A renewal payment “relates” to the end of a relevant six-month period for the purposes of subsections (1) and (3) if—

(a)

it is the last (or only) renewal payment for which the consumer becomes liable during that period, or

(b)

in a case where the consumer does not become liable for any renewal payment during that period, it is the first renewal payment for which the consumer becomes liable after the end of that period.

(6)

For the purposes of this section a subscription contract includes a concessionary period if it is a contract to which section 254(3) applies.

(7)

In this Chapter, a “renewal payment”, in relation to a subscription contract, means a payment for which the consumer could avoid liability by exercising a right to bring the contract to an end.

(8)

Section 259 contains further provision about—

(a)

the contents of reminder notices,

(b)

the times at which they must be given, and

(c)

how they must be given.

(9)

The Secretary of State may by regulations provide for the requirements imposed by this section and section 259—

(a)

not to apply in relation to specified descriptions of traders or contracts;

(b)

to apply subject to modifications in relation to specified descriptions of traders or contracts.

(10)

Regulations under subsection (9) are subject to the affirmative procedure.

259Content and timing etc of reminder notices

(1)

A reminder notice must contain—

(a)

the information set out in Part 3 of Schedule 23, and

(b)

any other information required by regulations under section 277(1)(b),

and that information must be given to the consumer all together.

(2)

A reminder notice must be given—

(a)

in accordance with subsections (3) to (8),

(b)

in such a way that the information referred to in subsection (1) is more prominent than any other information given to the consumer at the same time, and

(c)

in accordance with any other requirements specified in regulations under section 277(1)(a).

(3)

A reminder notice must be given within the period specified by the trader for the purposes of this section in the key pre-contract information given to the consumer in relation to the contract (see paragraph 10 of Schedule 23).

(4)

A period specified in key pre-contract information for the purposes of this section must be a period in advance of the last cancellation date which is reasonable for the purposes of—

(a)

informing the consumer that they will soon become liable for the renewal payment to which the notice relates, and

(b)

enabling the consumer to decide whether to bring the subscription contract to an end before incurring that liability (and to take the necessary steps to do so).

(5)

The “last cancellation date”, in relation to a reminder notice, means the last day on which the consumer could avoid becoming liable for the renewal payment to which the notice relates by exercising a right to bring the contract to an end.

(6)

Where subsection (7) applies, in addition to giving a reminder notice in accordance with subsection (3), an additional reminder notice must be given—

(a)

prior to the notice given in accordance with subsection (3), and

(b)

at a time which is reasonable for the purpose of providing additional notification to the consumer that they will soon become liable for the renewal payment to which the notice relates.

(7)

This subsection applies where—

(a)

the consumer will not become liable for a further renewal payment until after the end of the 12-month period, or

(b)

the consumer will not become liable for any further renewal payment but the contract continues beyond the end of the 12-month period.

(8)

In subsection (7), the “12-month period” means the period of 12 months beginning with the day before the day on which the consumer will become liable for the renewal payment to which the reminder notice relates.

260Arrangements for consumers to exercise right to end contract

(1)

A trader must make arrangements to enable a consumer to exercise a right to bring a subscription contract to an end—

(a)

in a way which is straightforward, and

(b)

without having to take any steps which are not reasonably necessary for bringing the contract to an end.

(2)

A consumer may, alternatively, exercise a right to bring a subscription contract to an end by notifying the trader in accordance with subsection (6) that the consumer is bringing the contract to an end.

(3)

A consumer may exercise a right to bring a subscription contract to an end at any time permitted by regulations under section 277(1)(c).

(4)

In relation to a subscription contract entered into online, arrangements under subsection (1) must—

(a)

enable a consumer to bring the contract to an end online, and

(b)

ensure that instructions for doing so are displayed online in a place or places that a consumer seeking to end the contract is likely to find them.

(5)

Arrangements under this section must comply with any other requirements specified in regulations under section 277(1)(c).

(6)

A notification under subsection (2) may be given by the consumer making a clear statement setting out their decision to bring the contract to an end.

261Duties of trader on cancellation or end of subscription contract

(1)

This section applies where a consumer—

(a)

has exercised a right under this Chapter to cancel a subscription contract, or

(b)

has exercised a right to bring a subscription contract to an end.

(2)

The trader must—

(a)

give the consumer a notice acknowledging that fact (referred to in this Chapter as an “end of contract notice”), and

(b)

if an overpayment has been received by the trader from the consumer, refund that overpayment.

(3)

An end of contract notice must set out—

(a)

the date on which the contract was or will be cancelled or on which it came, or will come, to an end, and

(b)

any other information required by regulations under section 277(1)(b).

(4)

An end of contract notice must be given—

(a)

in accordance with subsection (5),

(b)

in writing on a durable medium, and

(c)

in accordance with any other requirements specified in regulations under section 277(1)(a).

(5)

An end of contract notice must be given—

(a)

before the end of such period as may be specified in regulations under section 277(1)(a), or

(b)

if no such period is specified—

(i)

in the case of a consumer exercising a right mentioned in subsection (1) by giving a notification online, before the end of the period of 24 hours from the time that the consumer gives the notification;

(ii)

in a case where the consumer exercises such a right by giving a notification in any other way, before the end of the period of 3 working days beginning with the day after the day that the consumer gives that notification.

(6)

In subsection (2)(b) “overpayment”, in relation to a subscription contract, means any payment made by the consumer for which the consumer is not liable as a result of cancelling the subscription contract or bringing it to an end.

Rights of consumers to cancel contract for breach

262Terms implied into contracts

A trader’s compliance with the following duties is an implied term in every subscription contract—

(a)

the duty set out in section 256(1)(a) (key pre-contract information);

(b)

the duty set out in section 256(1)(b) (full pre-contract information);

(c)

the duty set out in section 258 (reminder notices);

(d)

the duty set out in section 259(4) to specify in key pre-contract information a reasonable period for the giving of a reminder notice under section 259(3) (timing for the giving of reminder notices);

(e)

the duty set out in section 260(1) (arrangements for consumer to end contract);

(f)

the duties set out in section 261(2) (end or cancellation of subscription contract).

263Right to cancel for breach of implied term

(1)

This section applies where a trader is in breach of the term implied into a subscription contract by section 262(a), (c), (d) or (e).

(2)

The consumer has the right to cancel the contract.

(3)

The right is exercisable by the consumer notifying the trader in accordance with subsection (4) that the consumer is cancelling the contract.

(4)

A notification under subsection (3) may be given by the consumer making a clear statement setting out their decision to cancel the contract.

(5)

A subscription contract is cancelled from the time the notification is given.

(6)

Where a subscription contract is cancelled under this section—

(a)

the cancellation ends both the trader’s and the consumer’s obligations to perform the contract in respect of any rights or liabilities that would arise (but for the cancellation) after the time at which the contract was cancelled,

(b)

the consumer’s liability for payments that have arisen under the contract is extinguished to any extent set out in regulations under section 267(1)(b) (and, accordingly, the consumer may be entitled to a refund), and

(c)

any other provision made under those regulations in relation to the treatment of goods, services or digital content supplied under a cancelled subscription contract applies.

(7)

No penalty or charge may be imposed on a consumer for cancelling a subscription contract under subsection (2).

(8)

For further provision about the exercise of a right to cancel under this section, see section 267.

Cooling-off rights

264Right to cancel during cooling-off periods

(1)

A consumer has the right to cancel a subscription contract during—

(a)

the initial cooling-off period, and

(b)

any renewal cooling-off period.

(2)

The right conferred by subsection (1)—

(a)

is exercisable in any circumstances, and

(b)

may not be subject to any conditions other than those set out in or under this Chapter.

(3)

The right is exercisable by the consumer notifying the trader in accordance with subsection (4) that the consumer is cancelling the contract.

(4)

A notification under subsection (3) may be given by the consumer making a clear statement setting out their decision to cancel the contract.

(5)

A subscription contract is cancelled from the time that such a notification is given.

(6)

Where a subscription contract is cancelled under this section—

(a)

the cancellation ends both the consumer’s and the trader’s obligations to perform the contract in respect of any rights or liabilities that would arise (but for the cancellation) after the time at which the contract was cancelled,

(b)

(c)

any other provision made under those regulations in relation to the treatment of goods, services or digital content supplied under a cancelled subscription contract applies.

(7)

No penalty or charge may be imposed on a consumer for cancelling a subscription contract under subsection (1).

(8)

For further provision about the exercise of a right to cancel under this section, see section 267.

265Meaning of “initial cooling-off period” and “renewal cooling-off period”

(1)

In this Chapter, the “initial cooling-off period”, in relation to a subscription contract, means the period—

(a)

beginning with the day the contract is entered into, and

(b)

ending—

(i)

in the case of a contract under which goods are supplied, at the end of the period of 14 days beginning with the day after the day on which the consumer receives the first supply of goods under the contract;

(ii)

in any other case, at the end of the period of 14 days beginning with the day after the day on which the contract is entered into.

(2)

In this Chapter, a “renewal cooling-off period”, in relation to a subscription contract, means a period—

(a)

beginning with the day on which a relevant renewal of the contract occurs, and

(b)

ending at the end of the period of 14 days beginning with the day after that day.

(3)

A “relevant renewal” of a subscription contract occurs for the purposes of subsection (2)—

(a)

when the consumer becomes liable under the contract for a first renewal payment following the end of a concessionary period, or

(b)

at any time when the consumer becomes liable under the contract for a renewal payment and either—

(i)

the consumer will not become liable for the next renewal payment until after the end of the 12-month period, or

(ii)

the consumer will not become liable for any further renewal payment but the contract continues beyond the end of the 12-month period.

(4)

In subsection (3)—

(a)

in paragraph (a), “concessionary period” means a period of time mentioned in section 254(3)(a), and

(b)

in paragraph (b), the “12-month period” means the period of 12 months beginning with the day before the day on which the consumer became liable for the renewal payment.

(5)

For the purposes of subsection (1)(b)(i), the first supply of goods under a subscription contract is not to be treated as having taken place until such time as the consumer receives all of the goods that the consumer is due to receive as part of that supply.

(6)

This section is subject to such extensions of a cooling-off period as may be provided for by regulations under section 267(1)(c).

266Cooling-off notice

(1)

In relation to each renewal cooling-off period, a trader must give the consumer a notice (referred to in this Chapter as a “cooling-off notice”).

(2)

A cooling-off notice must set out—

(a)

that the subscription contract is continuing,

(b)

that the consumer has a right to cancel the subscription contract during the cooling-off period to which the notice relates,

(c)

when that period begins and ends,

(d)

how the consumer may exercise the right to cancel,

(e)

if the consumer may lose the right, the circumstances under which that will happen,

(f)

the consequences of the consumer exercising the right, including—

(i)

any refund the consumer may be entitled to,

(ii)

any reason that refund might be diminished, and

(iii)

in respect of a contract for the supply of goods, whether the consumer will be responsible for returning those goods to the trader, and

(g)

any other information required by regulations under section 277(1)(b).

(3)

A cooling-off notice must be given—

(a)

on the first day of the renewal cooling-off period to which it relates or as soon as reasonably practicable after that day,

(b)

separately from the giving of any other information, and

(c)

in accordance with any other requirements specified in regulations under section 277(1)(a).

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.

Offence of failing to provide information about cooling-off rights

268Offence of failing to provide information about initial cooling-off rights

(1)

A trader commits an offence if the trader—

(a)

enters into an off-premises subscription contract, and

(b)

fails to—

(i)

give the consumer the information listed in paragraph 11(a) of Schedule 23 in accordance with section 256(1)(a), or

(ii)

give, or make available, the information set out in paragraph 21 of that Schedule in accordance with section 256(1)(b).

(2)

Subsections (3) and (4) apply where a trader—

(a)

commits an offence under subsection (1), or

(b)

would have committed an offence under that subsection but for a defence under section 269,

and the commission of the offence, or of what would have been the offence, is due to the act or omission of another person (“P”).

(3)

P commits the offence (whether or not P is a trader).

(4)

P may be charged with and convicted of the offence by virtue of subsection (3) whether or not proceedings are taken against the trader.

(5)

In this section, an “off-premises subscription contract” means a subscription contract—

(a)

entered into in person, in a place which is not the business premises of the trader,

(b)

entered into by any means immediately after the consumer was individually and personally addressed by the trader in person in a place which is not the business premises of the trader, or

(c)

entered into during an excursion organised by the trader with the aim or effect of promoting and selling goods or services to the consumer.

(6)

In subsection (5), “business premises”, in relation to a trader, means—

(a)

any immovable retail premises where the activity of the trader is carried out on a permanent basis, or

(b)

any movable retail premises where the activity of the trader is carried out on a usual basis.

(7)

In other provisions of this Chapter, references to an offence under subsection (1) include references to an offence under that subsection by virtue of subsection (3).

269Defence of due diligence

(1)

It is a defence for a person (“the defendant”) charged with an offence under section 268(1) to prove—

(a)

that the commission of the offence was due to—

(i)

the act or omission of another person, or

(ii)

reliance on information given by another person, and

(b)

that the defendant took all reasonable precautions and exercised all due diligence to avoid the commission of such an offence by the defendant or any other person under the defendant’s control.

(2)

A defendant is not entitled to rely on the defence provided by subsection (1) without the permission of the court unless—

(a)

the defendant has served on the prosecutor a notice in writing giving such information as was then in the defendant’s possession identifying, or assisting in the identification of, the other person, and

(b)

the notice is served on the prosecutor at least seven clear days before the hearing of the proceedings or, in Scotland, at least seven clear days before the trial diet.

270Offences by officers of a body corporate etc

(1)

If an offence under section 268(1) committed by a body corporate is proved—

(a)

to have been committed with the consent or connivance of an officer of the body, or

(b)

to be attributable to any neglect on the officer’s part,

the officer as well as the body corporate is guilty of the offence and liable to be proceeded against and punished accordingly.

(2)

In subsection (1) a reference to an officer of a body corporate includes a reference to—

(a)

a director, manager, secretary or other similar officer;

(b)

a person purporting to act as a director, manager, secretary or other similar officer.

(3)

If the affairs of a body corporate are managed by its members, subsection (1) applies in relation to the acts and defaults of a member in connection with the member’s functions of management as if the member were an officer of the body corporate.

(4)

Where an offence under section 268(1) committed by a Scottish partnership is proved—

(a)

to have been committed with the consent or connivance of a partner, or

(b)

to be attributable to any neglect on the part of a partner,

the partner as well as the partnership is guilty of the offence and liable to be proceeded against and punished accordingly.

(5)

In subsection (4), a reference to a partner includes a person purporting to act as a partner.

271Penalty for offence and enforcement

(1)

A person who is guilty of an offence under section 268(1) is liable—

(a)

on summary conviction in England Wales, to a fine;

(b)

on summary conviction in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale.

(2)

It is the duty of every local weights and measures authority in Great Britain to enforce section 268(1) in its area.

(3)

It is the duty of the Department for the Economy in Northern Ireland to enforce section 268(1) in Northern Ireland.

(4)

No proceedings for an offence under section 268(1) may be instituted in England and Wales except by or on behalf of a local weights and measures authority in Great Britain.

(5)

Nothing in subsection (2) authorises any local weights and measures authority in Great Britain to bring proceedings in Scotland for an offence.

General and miscellaneous provision

272Information and notices: timing and burden of proof

(1)

This section applies for the purposes of this Chapter.

(2)

Where a trader gives any information or notice under this Chapter by email, by a message sent online, or by any other means of electronic communication, the information or notice is to be treated as given by the trader, and as received by the consumer, at the time that the communication is sent to the consumer.

(3)

Subsection (2) applies even if the consumer does not receive the communication where the reason for that is beyond the control of the trader.

(4)

Subsection (5) applies for the purposes of determining whether a consumer has—

(a)

given notice that the consumer is cancelling a subscription contract in exercise of a right conferred by this Chapter within the period of time specified for the consumer to exercise the right;

(b)

given notice that the consumer is bringing a subscription contract to an end within a period of time, or before a date, specified or described in the contract as the period during which, or date before which, the consumer may exercise the right.

(5)

The consumer is to be treated as having given notice within the required period, or before the specified date, if the communication by which the notice is given is sent before the end of that period or date (and for this purpose it is immaterial whether or not the trader receives the notice).

(6)

The burden of proof lies with the trader in any dispute between the trader and a consumer as to whether information or a notice has been given by the trader to the consumer in accordance with this Chapter.

(7)

The burden of proof lies with the consumer in any dispute between the consumer and a trader as to—

(a)

whether the consumer has notified the trader that the consumer is bringing to an end, or cancelling, a subscription contract in accordance with this Chapter;

(b)

when the consumer gave such notice.

(8)

Any information that a trader gives to a consumer under this Chapter must be given in clear and plain language and

(a)

if given in writing, be in a legible form;

(b)

if given orally, be audible and comprehensible.

273Terms of a subscription contract which are of no effect

(1)

Any term of a subscription contract that is in contravention of this Chapter is, to that extent, of no effect (including any term that seeks to exclude or restrict a trader’s liability arising from the terms implied into the contract by section 262).

(2)

In cases to which this subsection applies, any term of a subscription contract which seeks to impose on a consumer liability for a renewal payment before the day on which the contract renews is, to that extent, of no effect.

(3)

Subsection (2) applies to cases of a description specified in regulations under section 277(1)(e) (and the regulations may include provision for determining when a contract renews in each description of case).

274Other remedies for breach by trader

(1)

Nothing in this Chapter is to be taken as limiting the taking of any other remedies available to a consumer for breach of any term (whether express, implied by section 262 or otherwise) of a subscription contract.

(2)

Those other remedies may be sought—

(a)

in addition to the rights conferred on the consumer by this Chapter (but not so as to recover twice for the same loss), or

(b)

instead of the exercise of any of those rights by the consumer.

(3)

Those other remedies include any of the following—

(a)

claiming damages;

(b)

seeking specific performance;

(c)

seeking an order for specific implement;

(d)

relying on the breach against a claim by the trader under the contract;

(e)

for breach of a term, exercising a right to treat the contract at an end.

275Application of this Chapter

(1)

Subsection (2) applies if—

(a)

the law of a country or territory other than the United Kingdom or any part of the United Kingdom is chosen by the parties to be applicable to a subscription contract, but

(b)

the contract has a close connection with the United Kingdom.

(2)

This Chapter applies in relation to the contract despite that choice.

(3)

This Chapter does not apply in relation to contracts entered into before section 254 comes into force.

(4)

Subsections (5) and (6) apply where—

(a)

a trader enters into a contract that is an excluded contract,

(b)

but for it being an excluded contract, the contract would have been a subscription contract, and

(c)

on a later day (the “relevant day”), the contract ceases to be an excluded contract and, accordingly, becomes a subscription contract.

(5)

This Chapter applies to the contract with the following modifications—

(a)

sections 256 and 257 (pre-contract information) do not apply;

(b)

section 258 (reminder notices) applies as if—

(i)

in subsection (1), the reference to a trader entering into a subscription contract with a consumer that does not involve a concessionary period were a reference to a trader entering into the contract,

(ii)

the reference in subsection (2)(a) to the day that the contract was entered into were a reference to the relevant day, and

(iii)

subsections (3), (4) and (6) were omitted;

(c)

section 259 (content and timing etc of reminder notices) applies as if, in subsections (3) and (4), references to the period specified by the trader in pre-contract information were references to the period specified by the trader in information given under subsection (6) of this section;

(d)

section 262 (terms implied into contracts) applies as if—

(i)

in paragraph (a), the reference to the duty set out in section 256(1)(a) were a reference to the duty set out in subsection (6) of this section;

(ii)

paragraph (b) was omitted;

(iii)

in paragraph (d), the reference to pre-contract information were a reference to the information given under subsection (6) of this section;

(e)

section 264 (right to cancel during cooling-off periods) applies as if subsection (1)(a) were omitted.

(6)

As soon as reasonably practicable after the relevant day, and in any event before the end of 12 months beginning with that day, the trader must give to the consumer key pre-contract information and full pre-contract information in relation to the contract, other than any such information that is excluded by subsection (7).

(7)

Information is excluded by this subsection if—

(a)

it relates to the initial cooling-off period under the contract;

(b)

it relates to a period mentioned in section 254(3)(a) (initial concessionary period) and the relevant day falls after the end of that period.

(8)

For the purposes of the duty under subsection (6)—

(a)

it is irrelevant whether any of the information required has already been given to the consumer before the relevant day,

(b)

section 256(5) applies as it applies for the purposes of the duty under section 256(1)(b), and

(c)

paragraph 13 of Schedule 23 is to be ignored.

276Crown application

(1)

Subject to subsection (2), this Chapter binds the Crown.

(2)

The Crown is not criminally liable as a result of anything in this Chapter.

(3)

Subsection (2) does not affect the application of any provision of this Chapter in relation to persons in the public service of the Crown.

277Power to make further provision in connection with this Chapter

(1)

The Secretary of State may by regulations make provision—

(a)

about how and when information or a notice that a trader is required to give to a consumer under this Chapter may or must be given;

(b)

about the information that is to be contained in a notice given under this Chapter;

(c)

about the arrangements that a trader must make under section 260 to enable a consumer to exercise a right to bring a subscription contract to an end, and about when a consumer may exercise such a right;

(d)

specifying the period of time within which the refund of an overpayment must be made under section 261(2)(b);

(e)

specifying descriptions of cases for the purposes of section 273(2) (and about the day on which a contract renews for those purposes).

(2)

Regulations under subsection (1)(c) may include (among other things) provision restricting the period of notice that a trader may require a consumer to give to bring a subscription contract to an end.

(3)

Regulations under this section are subject to the negative procedure.

Consequential amendments

278Consequential amendments to the Consumer Rights Act 2015

(1)

CRA 2015 is amended as follows.

(2)

In section 11 (goods to be as described)—

(a)

in subsection (4), after “(SI 2013/3134)” insert “, or in paragraph 14 of Schedule 23 to the Digital Markets, Competition and Consumers Act 2024,”, and

(b)

in subsection (5), after “effective” insert “as a variation of a term implied by subsection (4)”.

(3)

In section 12 (other pre-contract information included in contract)—

(a)

after subsection (2) insert—

“(2A)

Where section 256(1) of the Digital Markets, Competition and Consumers Act 2024 (pre-contract information) required the trader to give information, or make information available, to the consumer, any of that information that was provided by the trader other than information about goods mentioned in paragraph 14 of Schedule 23 to that Act is to be treated as included as a term of the contract.”, and

(b)

in subsection (3)—

(i)

for “that information” substitute “the information that is to be treated as a term of a contract under subsection (2) or (2A)”, and

(ii)

after “effective” insert “as a variation of a term implied by subsection (2) or (2A)”.

(4)

In section 36 (digital content to be as described)—

(a)

in subsection (3), after “(SI 2013/3134)” insert “, or in paragraph 14 or 27 of Schedule 23 to the Digital Markets, Competition and Consumers Act 2024,”, and

(b)

in subsection (4), after “effective” insert “as a variation of a term implied by subsection (3)”.

(5)

In section 37 (other pre-contract information included in contract)—

(a)

after subsection (2) insert—

“(2A)

Where section 256(1) of the Digital Markets, Competition and Consumers Act 2024 (pre-contract information) required the trader to give information, or make information available, to the consumer, any of that information that was provided by the trader other than information about digital content mentioned in paragraph 14 or 27 of Schedule 23 to that Act is to be treated as included as a term of the contract.”;

(b)

in subsection (3)—

(i)

for “that information” substitute “the information that is to be treated as a term of a contract under subsection (2) or (2A)”, and

(ii)

after “effective” insert “as a variation of a term implied by subsection (2) or (2A)”.

(6)

In section 50 (information about the trader or service to be binding)—

(a)

in subsection (3), after “(SI 2013/3134)” insert “, or in accordance with section 256(1) of the Digital Markets, Competition and Consumers Act 2024,”, and

(b)

in subsection (4), after “effective” insert “as a variation of a term implied by subsection (3)”.

(7)

In paragraph 10 of Schedule 5 to CRA 2015 (investigatory powers: enforcer’s legislation), at the appropriate place insert—

“Section 271(2) and (3) of the Digital Markets, Competition and Consumers Act 2024;”.

279Other consequential amendments

(1)

In Schedule 3 to the Regulatory Enforcement and Sanctions Act 2008, at the appropriate place insert—

“Digital Markets, Competition and Consumers Act 2024, Chapter 2 of Part 4.”.

(2)

In EA 2002—

(a)

in Schedule 14 (provisions about disclosure of information) at the appropriate place insert—

“Chapter 2 of Part 4 of the Digital Markets, Competition and Consumers Act 2024.”;

(b)

in Schedule 15 (enactments conferring functions) at the appropriate place insert—

“Chapter 2 of Part 4 of the Digital Markets, Competition and Consumers Act 2024.”

(3)

The Consumer Contracts (Information Cancellation and Additional Charges) Regulations 2013 (S.I. 2013/3134) is amended as follows.

(4)

In regulation 5 (other definitions), at the appropriate place insert—

““subscription contract” has the meaning it has in Chapter 2 of Part 4 of the Digital Markets, Competition and Consumers Act 2024 (see section 254 of that Act);”.

(5)

After regulation 7(4) (application of Part 2) insert—

“(4A)

This Part does not apply to a subscription contract entered into after section 256 of the Digital Markets, Competition and Consumers Act 2024 comes into force.”

(6)

After regulation 27(3) (application of Part 3) insert—

“(3A)

This Part does not apply to a subscription contract entered into after section 264 of the Digital Markets, Competition and Consumers Act 2024 comes into force.”

General interpretation

280Interpretation

(1)

In this Chapter—

“business” includes—

(a)

a trade, craft or profession,

(b)

any other undertaking carried on for gain or reward, and

(c)

the activities of any government department or local or public authority;

“consumer” means an individual acting for purposes that are wholly or mainly outside the individual’s business;

“durable medium” means paper, email or any other medium that—

(a)

allows information to be addressed personally to the consumer,

(b)

enables the consumer to store information in a way accessible for future reference for a period that is long enough for the purposes of the information, and

(c)

allows the unchanged reproduction of information stored;

“goods” includes—

(a)

immoveable property;

(b)

rights and obligations;

(c)

water, gas and electricity if they are put up for sale in a limited volume or set quantity;

“trader” means a person (“P”) acting for purposes relating to P’s business, whether acting personally or through another person acting in P’s name or on P’s behalf.

(2)

In this Chapter—

(a)

references to a contract for the supply of goods, services or digital content include references to a contract for the supply of any combination of goods, services and digital content;

(b)

references to payment or to a consumer being charged are references to payment, or a consumer being charged, in money or money’s worth;

(c)

references to something happening automatically under a subscription contract are references to it happening without any action on the part of the consumer to cause it to happen (ignoring the consumer’s action of entering into the contract or any action taken in connection with, or for the purpose of, entering into it);

(d)

references to something recurring are references to it happening more than once;

(e)

references to a supply of goods, services or digital content for a fixed term include references to a supply of goods, services or digital content which is fixed to any extent;

(f)

references to a consumer entering into a subscription contract include references to a consumer placing an order for the supply of goods, services or digital content under a subscription contract in circumstances where—

(i)

the trader is (in any way) inviting such orders, and

(ii)

the consumer is not required to take any further action for the contract to be concluded.

281Index of defined expressions

In this Part, the expressions listed in the left-hand column have the meaning given by, or are to be interpreted in accordance with, the provisions listed in the right-hand column.

Expression
Business	Section 280(1)
Consumer	Section 280(1)
Cooling-off notice	Section 266(1)
Digital content	Section 330
Durable medium	Section 280(1)
Excluded contract	Section 255
Full pre-contract information	Section 256(1)(b)
Goods	Section 280(1)
Initial cooling-off period	Section 265(1)
Key pre-contract information	Section 256(1)(a)
Reminder notice	Section 258
Renewal cooling-off period	Section 265(2)
Renewal payment	Section 258(7)
Subscription contract	Section 254
Trader	Section 280(1)
Working day	Section 330