Part 4Consumer rights and disputes

Chapter 2Subscription contracts

Introduction

254Meaning of “subscription contract”

(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

(c)

which is not an excluded contract (see section 255).

(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

(c)

a right for the consumer to bring the contract to an end.

(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

(c)

a right for the consumer to bring the contract to an end before such liability is incurred.

(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.