Member Article

Nope, we’re not referring to Elvis Presley’s Suspicious Minds but rather in relation to the perils consumers have been facing when falling into subscription traps set by traders. So, how will the Digital Markets, Consumers and Competition Bill (Bill) protect consumers?

Subscription contracts – why the change? 

It has been estimated that consumers spend approximately £573 million per year on subscriptions they have forgotten about and £602 million on subscriptions that have automatically rolled over from a free or reduced-price trial.[1] These alarming statistics illustrate the importance of addressing reforms in this area – and the Bill aims to do just that by establishing regulations that govern the operation of businesses that provide subscription contracts.

How will the Bill regulate subscription contracts?

The Bill introduces additional obligations on businesses offering subscription contracts and further rights for consumers to allow them to exit such contracts easily. The Bill contains exemptions when it will not apply including, specifically, in relation to certain subscription contracts which can be found at Schedule 19 of the Bill. These include, for example, contracts for the supply of utilities, financial services and supply of services regulated by Ofcom. 

For subscription contracts that are within scope of the Bill, we have outlined below the key requirements throughout the duration of a subscription contract.