Subscriptions: Misrepresentation
The question
To ask the Solicitor General, what recent guidance has been issued to prosecutors regarding enforcement against companies engaging in misleading subscription practices.
Answered by Ellie Reeves
The Digital Markets, Competition and Consumers Act 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.
The government has recently published its response to the Consultation on the Implementation of the new Subscription Contracts Regime: Consultation on the implementation of the new subscription contracts regime - GOV.UK.
The Competition and Markets Authority (CMA) and local Trading Standards can take enforcement action against breaches of consumer protection law, including breaches of the existing and new subscription rules once they are in force. The DMCCA gives the CMA new powers to impose fines of up to 10% of global turnover on businesses who infringe consumer protection law. We will continue to engage with the CMA ahead of new regulations commencing.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →