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To ask the Secretary of State for Business and Trade, what recent discussions he has had with the Competition and Markets Authority on enforcement action against companies operating misleading subscription models.
To ask the Secretary of State for Business and Trade, what recent discussions he has had with the Competition and Markets Authority on enforcement action against companies operating misleading subscription models.
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.
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. We engaged with the Competition and Markets Authority (CMA) during the consultation.
The 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.
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.
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.
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.
To ask the Solicitor General, what recent guidance has been issued to prosecutors regarding enforcement against companies engaging in misleading subscription practices.
To ask the Solicitor General, what recent guidance has been issued to prosecutors regarding enforcement against companies engaging in misleading subscription practices.
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.
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of requiring banks to implement stronger safeguards or alerts for recurring payments initiated after free trials.
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of requiring banks to implement stronger safeguards or alerts for recurring payments initiated after free trials.
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
The DMCCA requirements will apply to traders offering subscriptions and the Government currently has no plans to introduce new requirements on banks to tackle subscription traps. The Government will keep the effectiveness of the new rules under review.