Legislation – Digital Markets, Competition and Consumers Act 2024

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Part 4Consumer rights and disputes

Chapter 2Subscription contracts

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.