Legalize / United Kingdom / Public General Act

Digital Markets, Competition and Consumers Act 2024

Type Public General Act

Publication 2024-05-24

Last updated 2026-04-06

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(5) For the purposes of subsection (4) a trader who fails to have regard to whether a commercial practice involves a contravention of the requirements of professional diligence is to be treated as being reckless as to whether it does (regardless of whether the trader has reason to believe that it might).

(6) A trader commits an offence if, in breach of section 225 (1), the trader engages in an unfair commercial practice by omitting material information from an invitation to purchase (see section 225 (4)(b)).

(7) A trader commits an offence if, in breach of section 225 (1), the trader engages in a commercial practice which is unfair by virtue of it being of a description listed in Schedule 20 (see section 225 (4)(c)) other than an excluded description.

(8) The following are excluded descriptions for the purposes of subsection (7)—

(a) the description of practice mentioned in paragraph 12 of Schedule 20;

(b) the descriptions of practices mentioned in paragraph 13 of that Schedule;

Defence of due diligence and innocent publication

238

(1) It is a defence for a person (“the defendant”) charged with an offence under subsection (1), (2), (3), (6) or (7) of section 237 to prove—

(a) that the commission of the offence was due to—

(i) the act or omission of another person,

(ii) reliance on information given by another person,

(iii) a mistake or accident, or

(iv) another cause beyond the defendant’s control, 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) Subsection (3) applies in a case where a person (“the defendant”) has been charged with an offence under subsection (1), (2), (3), (6) or (7) of section 237 alleged to have been committed by the publication of an advertisement.

(3) It is a defence for the defendant to prove that—

(a) the defendant’s business is to publish or arrange for the publication of advertisements,

(b) the defendant received the advertisement for publication in the ordinary course of business, and

(c) the defendant did not know and had no reason to suspect that its publication would amount to the offence with which the defendant is charged.

(4) A defendant is not entitled to rely on the defence provided by subsection (1) by reason of the matters referred to in paragraph (a)(i) or (a)(ii) of that subsection 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.

(5) In subsection (3), “advertisement”—

(a) means anything published (in any form) for the purpose of promoting a product to the public or a section of the public, and

(b) includes a catalogue, a circular and a price list.

Offences: criminal liability of others

239

(1) Subsections (2) and (3) apply where a trader—

(a) commits an offence under subsection (1), (2), (3), (6) or (7) of section 237, or

(b) would have committed an offence under that subsection but for a defence under section 238,

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”.

(2) P commits the offence (whether or not P is a trader and whether or not P’s act or omission is a commercial practice).

(3) P may be charged with and convicted of the offence by virtue of subsection (2) whether or not proceedings are taken against the trader.

(4) In other provisions of this Chapter (including the rest of this section), references to an offence under subsection (1), (2), (3), (6) or (7) of section 237 include references to an offence under that subsection by virtue of subsection (2).

(5) If an offence under section 237 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 part of an officer,

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

(6) If the affairs of a body corporate are managed by its members, subsection (5) 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.

(7) If an offence under section 237 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.

(8) In other provisions of this Chapter, references to an offence under section 237 include references to an offence under that section by virtue of subsection (5) or (7).

(9) In subsection (5) a reference to an officer of a body corporate includes a reference to—

(a) a director, manager, secretary or other similar officer, or

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

(10) In subsection (7), a reference to a partner includes a person purporting to act as a partner.

Penalty for offences

240

A person guilty of an offence under section 237 is liable—

(a) on summary conviction in England and Wales, to a fine;

(b) on summary conviction in Scotland or Northern Ireland, to a fine not exceeding the statutory maximum;

Time limit for prosecution

241

(1) No proceedings for an offence under section 237 may be commenced after the earlier of—

(a) the end of the period of 3 years beginning with the date of the commission of the offence, or

(b) the end of the period of 1 year beginning with the date of discovery of the offence by the prosecutor.

(2) For the purposes of subsection (1)(b)—

(a) a certificate signed by or on behalf of the prosecutor and stating the date on which the prosecutor discovered the offence is conclusive evidence of that fact, and

(b) a certificate stating that matter and purporting to be so signed is to be treated as so signed unless the contrary is proved.

Miscellaneous

Powers to amend this Chapter

242

(1) The Secretary of State may by regulations amend Schedule 20 (commercial practices which are in all circumstances considered unfair) so as to—

(a) add a description of a commercial practice;

(b) remove a description of a commercial practice;

(2) If regulations under subsection (1) amend Schedule 20 so as to add a description of a commercial practice, the regulations must also amend section 237 (8) so as to make that practice an excluded description of practice.

(3) The Secretary of State may by regulations amend section 232 (7) (rights of redress: prohibited practices) so as to—

(a) add further commercial practices that are unfair under this Chapter to the list of prohibited practices;

(b) remove from the list of prohibited practices any commercial practices that have been added by regulations.

(4) The Secretary of State may by regulations amend section 230 (2) (material information in respect of an invitation to purchase) so as to—

(a) add descriptions of information;

(b) modify descriptions of information;

(5) Before making regulations under this section, the Secretary of State must consult such persons as the Secretary of State considers appropriate.

(6) Regulations under this section are subject to the affirmative procedure.

Crown application

243

(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.

Validity of agreements

244

Except as resulting from a consumer’s rights of redress under this Chapter, a contract or any other agreement is not void or unenforceable by reason only of a breach of the prohibition in section 225 (1) or (2) (prohibition of unfair commercial practices or the promotion of unfair commercial practices).

Interpretation

Meaning of “transactional decision”

245

In this Chapter, “transactional decision” means any decision made by a consumer relating to—

(a) the purchase or supply of a product (including whether, how or on what terms to make the purchase or supply);

(b) the retention, disposal or withdrawal of a product (including whether, how or on what terms to retain or dispose of it);

(c) the exercise of contractual rights in relation to a product (including whether, how or on what terms to exercise such rights).

Meaning of “average consumer”: general

246

(1) This section provides for how references to the average consumer are to be read for the purposes of this Chapter.

(2) The average consumer is—

(a) reasonably well informed,

(b) reasonably observant, and

(3) The average consumer is to be treated as not knowing information in relation to a commercial practice where such information has been concealed by the trader (even if the average consumer might know the information from another source).

(4) Where a commercial practice is directed at a particular group, the average consumer is an average member of that group (and the attributes of the average consumer in subsection (2) are to be read accordingly).

(5) This section is subject to section 247.

Meaning of “average consumer”: vulnerable persons

247

(1) Subsection (2) applies where a group of consumers is particularly vulnerable to a commercial practice in a way that the trader could reasonably be expected to foresee.

(2) References in this Chapter to the average consumer, so far as relating to cases to which this subsection applies, are to be read as references to an average member of the group mentioned in subsection (1) (and the attributes of the average consumer in section 246 (2) are to be read accordingly).

(3) For the purposes of subsection (1), the reference to a group of consumers being particularly vulnerable to a commercial practice—

(a) is a reference to the members of the group being particularly vulnerable to the commercial practice causing them to take a transactional decision that they would not have taken otherwise, and

(b) includes a reference to a group of consumers being vulnerable to a practice because of the product to which it relates.

(4) For the purposes of subsection (1), a group of consumers may be vulnerable as a result of (among other things)—

(a) their age;

(b) their physical or mental health;

(d) the circumstances they are in.

Meaning of “product”

248

(1) In this Chapter, “product” means—

(a) goods;

(b) a service;

(2) For the purposes of this Chapter, a trader agreeing to the full or partial settlement of a consumer’s liabilities or purported liabilities in return for the consumer meeting a demand for payment is supplying a service.

General interpretation

249

In this Chapter—

“business” includes— a trade, craft or profession, any other undertaking carried on for gain or reward, and the activities of any government department or local or public authority;

“code of conduct” means an agreement or set of rules which defines the behaviour of traders who choose to be bound by it;

“goods” includes— immoveable property, and rights and obligations, but includes water, gas and electricity only if they are put up for sale in a limited volume or set quantity;

“supply”, in relation to a product, includes supply by means of sale, lease, hire or hire purchase.

Index of defined terms

250

In this Chapter, 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*	*Provision*
Aggressive practice	Section 228
Average consumer	Sections 246 and 247
Business	Section 249
Business-to-consumer contract	Section 232 (2)(a)
Code of conduct	Section 249
Commercial practice	Section 225 (3)
Consumer	Section 225 (3)
Consumer payment	Section 232 (2)(c)
Consumer-to-business contract	Section 232 (2)(b)
Contravention of the requirements of professional diligence	Section 229
Enactment	Section 330
Goods	Section 249
Invitation to purchase	Section 230 (10)
Misleading action	Section 226
Misleading omission	Section 227
Product	Section 248
Prohibited practice	Section 232 (7)
Supply	Section 249
Trader	Section 225 (3)
Transactional decision	Section 245
Unfair commercial practice	Section 225 (4)

Consequential amendments and transitional provision

Consequential amendments relating to this Chapter

251

(1) The Consumer Protection from Unfair Trading Regulations 2008 (S.I. 2008/1277) are revoked.

(2) Schedule 21 contains further consequential amendments relating to this Chapter.

Transitional and saving provision relating to this Chapter

252

(1) This Chapter applies only in relation to an act or omission which takes place on or after the commencement date.

(2) The CPUTR 2008 continue to have effect in relation to any act or omission which takes place before the commencement date.

(3) In this section—

“the commencement date” means— for the purposes of the saving by subsection (2) of Part 4A of the CPUTR 2008 (and other provisions of those Regulations so far as relating to that Part), the date on which the first regulations made under section 233 come into force; for all other purposes, the date on which section 225 comes into force;

“CPUTR 2008” means the Consumer Protection from Unfair Trading Regulations 2008 (S.I. 2008/1277).

Chapter 2 — Subscription contracts

Introduction

Overview

253

(1) This Chapter—

(a) imposes duties on traders in relation to subscription contracts,

(b) provides rights for consumers if those duties are breached, and

(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.

Meaning of “subscription contract”

254

(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

(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

(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

(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.

Excluded contracts

255

(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

Pre-contract information

256

(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

(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;

(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.

Pre-contract information: additional requirements

257

(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

(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.

Reminder notices

258

(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

(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.

Content and timing etc of reminder notices

259

(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

(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.

Arrangements for consumers to exercise right to end contract

260

(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.

Duties of trader on cancellation or end of subscription contract

261

(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

(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

Terms implied into contracts

262

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);

(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).

Right to cancel for breach of implied term

263

(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

Right to cancel during cooling-off periods

264

(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) 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 (1).

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

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

265

(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).

Cooling-off notice

266

(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,

(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

Cancellation of contracts under this Chapter: further provision

Cancellation of subscription contract: further provision

267

(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;

(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

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

268

(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).

Defence of due diligence

269

(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.

Offences by officers of a body corporate etc

270

(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.

Penalty for offence and enforcement

271

(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

Information and notices: timing and burden of proof

272

(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.

Terms of a subscription contract which are of no effect

273

(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).

Other remedies for breach by trader

274

(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;

(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.

Application of this Chapter

275

(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.

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