Subscriptions: Fees and Charges
The question
To ask the Secretary of State for Business and Trade, what assessment he has made of the prevalence of deceptive online subscription practices, including misleading free trials and unclear recurring payment terms.
Answered by Kate Dearden
The Digital Markets, Competition and Consumers Act (DMCCA) 2024 sets out new consumer protection rules for subscription contracts. Once the rules are in force, traders will have to provide clear information about subscription contracts before a consumer signs up, ensure that arrangements to exit the contract are straightforward, and provide a 14-day cooling-off period after a 12month+ contract or trial auto-renews.
Secondary legislation is required to implement the regime. We consulted on proposals and the Government Response can be found here: Consultation on the implementation of the new subscription contracts regime - GOV.UK.
The new protections will save the average consumer £14 per month for every unwanted subscription they cancel. The Department for Business and Trade published an Impact Assessment alongside the DMCCA: Subscription traps: annex 2 impact assessment.
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