Question to the Department for Business and Trade:

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.