This paper outlines the current regulation of doorstep selling (or cold calling) under the provisions of the Consumer Contracts Regulations 2013. It also provides information on how 'No Cold Calling Zones' work in practice.

This paper outlines the current regulation of doorstep selling (or cold calling) under the provisions of the Consumer Contracts Regulations 2013. It also provides information on how 'No Cold Calling Zones' work in practice.

My hon Friend the Minister for Employment Rights and Consumer Protection (Kate Dearden MP) has today made the following statement.

Subscription contracts play an increasingly significant role in the lives of UK consumers. Across the economy, people rely on subscription services for everything from streaming and software to meal kits, fitness,...

My hon Friend the Minister for Employment Rights and Consumer Protection (Kate Dearden MP) has today made the following statement.

Subscription contracts play an increasingly significant role in the lives of UK consumers. Across the economy, people rely on subscription services for everything from streaming and software to meal kits, fitness,...

Subscription contracts play an increasingly significant role in the lives of UK consumers. Across the economy, people rely on subscription services for everything from streaming and software to meal kits, fitness, and household essentials. There are an estimated 155 million active subscriptions in the UK, representing around £26 billion of...

Subscription contracts play an increasingly significant role in the lives of UK consumers. Across the economy, people rely on subscription services for everything from streaming and software to meal kits, fitness, and household essentials. There are an estimated 155 million active subscriptions in the UK, representing around £26 billion of...

To ask the Secretary of State for Business and Trade, pursuant to the answer to Question 110629 on 9 February, what assessment his Department has given to the potential merits of exempting charities from sections of the Digital Markets, Competition and Consumer Act 2024 relating to the (a) subscription regime...

To ask the Secretary of State for Business and Trade, pursuant to the answer to Question 110629 on 9 February, what assessment his Department has given to the potential merits of exempting charities from sections of the Digital Markets, Competition and Consumer Act 2024 relating to the (a) subscription regime...

To ask the Secretary of State for Business and Trade, when he plans to take steps to tackle subscription traps.

To ask the Secretary of State for Business and Trade, when he plans to take steps to tackle subscription traps.

To ask the Secretary of State for Business and Trade, what assessment his Department have made of the potential impacts of a 14-day cooling off period for all online subscriptions on the number of people that cancel their subscription after visiting a site run by a charity in a 14-day...

To ask the Secretary of State for Business and Trade, what assessment his Department have made of the potential impacts of a 14-day cooling off period for all online subscriptions on the number of people that cancel their subscription after visiting a site run by a charity in a 14-day...

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.

My Lords, I have had a number of exchanges with the Minister, for which I am very grateful. In considering next steps, will he take into account the worries expressed by charities, and arts and heritage organisations, about the inevitable decimation of their fundraising efforts? Would he agree that introducing the cooling-off period set out in the recently enacted DMCCA immediately on signing up would

allow thousands of people to join, say, art galleries, take advantage of the membership benefits of reduced admission fees to exhibitions over, say, a weekend’s holiday in London, and then legally cancel their memberships under the cooling-off period set out in the new Act, which will cripple membership schemes as a fundraising model that are currently worth hundreds of millions of pounds to charities across the UK every year? Will the Government accelerate their consideration to exempt our charities, museums, galleries and national heritage homes, just as they have exempted gambling contracts and society lotteries under Schedule 22 in order to protect their fundraising efforts?

My Lords, I have had a number of exchanges with the Minister, for which I am very grateful. In considering next steps, will he take into account the worries expressed by charities, and arts and heritage organisations, about the inevitable decimation of their fundraising efforts? Would he agree that introducing the cooling-off period set out in the recently enacted DMCCA immediately on signing up would

allow thousands of people to join, say, art galleries, take advantage of the membership benefits of reduced admission fees to exhibitions over, say, a weekend’s holiday in London, and then legally cancel their memberships under the cooling-off period set out in the new Act, which will cripple membership schemes as a fundraising model that are currently worth hundreds of millions of pounds to charities across the UK every year? Will the Government accelerate their consideration to exempt our charities, museums, galleries and national heritage homes, just as they have exempted gambling contracts and society lotteries under Schedule 22 in order to protect their fundraising efforts?

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.

My Lords, Section 267 gives the Government the clear ability to use the regulation-making powers to recognise the specific circumstances of particular services, such as streaming, charitable memberships and, of course, the news media. Do the Government intend to make distinctions between those sectors? If so, will the Government make sure that streaming services, the charitable sector and, indeed, the news media are protected from early termination?

My Lords, Section 267 gives the Government the clear ability to use the regulation-making powers to recognise the specific circumstances of particular services, such as streaming, charitable memberships and, of course, the news media. Do the Government intend to make distinctions between those sectors? If so, will the Government make sure that streaming services, the charitable sector and, indeed, the news media are protected from early termination?

My Lords, how do the Government account for the concerns of privately owned heritage? The majority of members of Historic Houses, for example, are neither charities nor large heritage organisations, yet they are wholly dependent on subscriptions and membership for the preservation of our nationally significant heritage. I note my interest as a member of Historic Houses.

My Lords, how do the Government account for the concerns of privately owned heritage? The majority of members of Historic Houses, for example, are neither charities nor large heritage organisations, yet they are wholly dependent on subscriptions and membership for the preservation of our nationally significant heritage. I note my interest as a member of Historic Houses.

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.

My Lords, I support my noble friend in his Question and welcome the tone of the Minister’s thoughtful reply. As a proud member of the British Museum scheme, I think there is a loophole and an unintended consequence of the good intention of the Act, which needs support. I assure the Minister that he will have widespread support in this House if he can find a way through this problem.

My Lords, I support my noble friend in his Question and welcome the tone of the Minister’s thoughtful reply. As a proud member of the British Museum scheme, I think there is a loophole and an unintended consequence of the good intention of the Act, which needs support. I assure the Minister that he will have widespread support in this House if he can find a way through this problem.

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 Lords, while we are on this subject, is it not the case that our regulators and our consumer rights are letting Britain down, and that we are in what we call rip-off Britain? Do we not need to look at regulation and consumer rights as a whole and come forward with a package to address the problems?

My Lords, while we are on this subject, is it not the case that our regulators and our consumer rights are letting Britain down, and that we are in what we call rip-off Britain? Do we not need to look at regulation and consumer rights as a whole and come forward with a package to address the problems?

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.

My Lords, I declare an interest as a trustee of the National Portrait Gallery. This issue is particularly important as last week’s Red Book shows that the DCMS’s budget is going to fall in the latter part of this decade. This means that public institutions will be under greater financial pressure. The last thing they need, therefore, is an issue of this kind. I offer my support to my noble friend and urge the Minister to do everything he can to get rid of this anomaly.

My Lords, I declare an interest as a trustee of the National Portrait Gallery. This issue is particularly important as last week’s Red Book shows that the DCMS’s budget is going to fall in the latter part of this decade. This means that public institutions will be under greater financial pressure. The last thing they need, therefore, is an issue of this kind. I offer my support to my noble friend and urge the Minister to do everything he can to get rid of this anomaly.