My Lords, the Government have consulted on how the new subscription rules will work under the Digital Markets, Competition and Consumers Act—this includes what happens when a consumer uses their cooling-off right to cancel—and are carefully reviewing responses from cultural and heritage organisations. My officials have engaged directly with sector representatives and will continue to do so to ensure that the final regulations reflect their concerns and support both consumer protection and organisational sustainability.

My Lords, the Government have consulted on how the new subscription rules will work under the Digital Markets, Competition and Consumers Act—this includes what happens when a consumer uses their cooling-off right to cancel—and are carefully reviewing responses from cultural and heritage organisations. My officials have engaged directly with sector representatives and will continue to do so to ensure that the final regulations reflect their concerns and support both consumer protection and organisational sustainability.

The noble Lord will know that, under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, consumers already have a cooling-off period for distance contracts, so this is not new for the sector. The digital content waiver is long established, and most charitable memberships are service contracts, not digital content. We consulted on extending the waiver, as that would reduce consumer rights. Having said that, gambling is excluded due to the existing specialist regulations. We recognise the concerns raised by charities and heritage organisations about potential misuse and will continue to work closely with charities as we finalise the secondary legislation.

The noble Lord will know that, under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, consumers already have a cooling-off period for distance contracts, so this is not new for the sector. The digital content waiver is long established, and most charitable memberships are service contracts, not digital content. We consulted on extending the waiver, as that would reduce consumer rights. Having said that, gambling is excluded due to the existing specialist regulations. We recognise the concerns raised by charities and heritage organisations about potential misuse and will continue to work closely with charities as we finalise the secondary legislation.

I thank the noble Earl for that. As far as heritage organisations are concerned, it is up to the individual organisation how its business model is structured. If it is a subscription model for contracts or services then it falls in scope of this legislation and the cooling-off period will apply.

I thank the noble Earl for that. As far as heritage organisations are concerned, it is up to the individual organisation how its business model is structured. If it is a subscription model for contracts or services then it falls in scope of this legislation and the cooling-off period will apply.

I thank the noble Lord for that. This is precisely why the Government are taking their time. We have consulted widely—the consultation finished at the end of February—and we are analysing the responses. There are various complexities. It also impacts on HMRC, as far as gift aid is concerned. We must ensure that we get this absolutely right, and we will make a decision in due course.

I thank the noble Lord for that. This is precisely why the Government are taking their time. We have consulted widely—the consultation finished at the end of February—and we are analysing the responses. There are various complexities. It also impacts on HMRC, as far as gift aid is concerned. We must ensure that we get this absolutely right, and we will make a decision in due course.

My noble friend is absolutely right. As it stands, all consumers are protected under the consumer contracts regulations, which basically allow consumers to have that cooling-off period if they subscribe to a service online. The Act extends that to subscription in person so that consumers will be protected under this legislation.

My noble friend is absolutely right. As it stands, all consumers are protected under the consumer contracts regulations, which basically allow consumers to have that cooling-off period if they subscribe to a service online. The Act extends that to subscription in person so that consumers will be protected under this legislation.

Every consumer has a right to do that under current consumer protections. They have a cooling-off period of 14 days to cancel that subscription

if it is a distance subscription. Under the new Act, if the subscription is taken up or renewed in person, the cooling-off period is extended to 14 days, so consumers will have the right to cancel or stay within the subscription.

Every consumer has a right to do that under current consumer protections. They have a cooling-off period of 14 days to cancel that subscription

if it is a distance subscription. Under the new Act, if the subscription is taken up or renewed in person, the cooling-off period is extended to 14 days, so consumers will have the right to cancel or stay within the subscription.

I thank the noble Lord for that. I assure him that my officials and I are working to ensure that we get this right. The new subscription regime will ensure that in particular situations, including after the contract automatically renews on to a 12-month term, consumers have a 14-day window in which to cancel. Should any changes be needed in secondary legislation that we publish, they will not commence until autumn 2026, so there is plenty of time for charities and heritage organisations to put their houses in order before this regime kicks in.

I thank the noble Lord for that. I assure him that my officials and I are working to ensure that we get this right. The new subscription regime will ensure that in particular situations, including after the contract automatically renews on to a 12-month term, consumers have a 14-day window in which to cancel. Should any changes be needed in secondary legislation that we publish, they will not commence until autumn 2026, so there is plenty of time for charities and heritage organisations to put their houses in order before this regime kicks in.

I thank the noble Lord for that kind suggestion. I am sure my officials, who are sitting in the Box, have heard it.

I thank the noble Lord for that kind suggestion. I am sure my officials, who are sitting in the Box, have heard it.

To ask His Majesty’s Government, in making regulations under section 267 of the Digital Markets, Competition and Consumers Act 2024, what plans they have to account for concerns raised by cultural and heritage organisations regarding the right of consumers to cancel subscription contracts.

To ask His Majesty’s Government, in making regulations under section 267 of the Digital Markets, Competition and Consumers Act 2024, what plans they have to account for concerns raised by cultural and heritage organisations regarding the right of consumers to cancel subscription contracts.

I thank the noble Lord for that. It is precisely what we are doing. We are taking our time to consider the consultation and we are analysing the responses. We must get this right. As I said, charities have to comply with current consumer protection regulations. As it stands, most charities, perhaps because they do not understand the implications of the Act, have been claiming gift aid, even though their membership may be for a provision of services. We need to ensure that HMRC and the DCMS work through the technicalities so that we are not caught in the loophole that the noble Lord mentioned.

I thank the noble Lord for that. It is precisely what we are doing. We are taking our time to consider the consultation and we are analysing the responses. We must get this right. As I said, charities have to comply with current consumer protection regulations. As it stands, most charities, perhaps because they do not understand the implications of the Act, have been claiming gift aid, even though their membership may be for a provision of services. We need to ensure that HMRC and the DCMS work through the technicalities so that we are not caught in the loophole that the noble Lord mentioned.

The noble Lord makes an interesting point. Let us look at the policy. We are talking about unwanted subscriptions, which account for some £1.6 billion a year. This Act will save consumers some £14 a month, which is about £147 million a year. As it stands, charities have to comply with consumer law irrespective of charitable status. Companies, especially digital service organisations, have the legislation that is currently in place, so that will stay as it is. The cooling-off period under the new Act is just an extension from distance contracts to in person.

The noble Lord makes an interesting point. Let us look at the policy. We are talking about unwanted subscriptions, which account for some £1.6 billion a year. This Act will save consumers some £14 a month, which is about £147 million a year. As it stands, charities have to comply with consumer law irrespective of charitable status. Companies, especially digital service organisations, have the legislation that is currently in place, so that will stay as it is. The cooling-off period under the new Act is just an extension from distance contracts to in person.

My Lords, I thank all noble Lords who have spoken in this debate. Once again, I have been extremely impressed by the range of expertise and the depth of insight. Conscious of the time we have all been here, I will address some of the key amendments as briefly as...

My Lords, I thank all noble Lords who have spoken in this debate. Once again, I have been extremely impressed by the range of expertise and the depth of insight. Conscious of the time we have all been here, I will address some of the key amendments as briefly as...

Lords report stage second day. Amendments 66, 70 to 90, 93 to 98, 102, 103, 107, 112 to 114, 116, 117, 119, 121 to 125, 128 to 130, 132, 136 to 139 and 141 to 149 agreed to. Amendment 150 agreed to on division (165 to 154). Amendments 154 to 157 and 159 to 161 agreed to. Bill, as amended, ordered to be printed (HL Bill 53).

Lords report stage second day. Amendments 66, 70 to 90, 93 to 98, 102, 103, 107, 112 to 114, 116, 117, 119, 121 to 125, 128 to 130, 132, 136 to 139 and 141 to 149 agreed to. Amendment 150 agreed to on division (165 to 154). Amendments 154 to...