Following our previous post about the implementation of the new subscription regime under the Digital Markets, Competition and Consumers Act 2024 (“DMCCA”), the government has now published the secondary legislation that will bring this into law. The Consumer Subscription Contracts (Cancellation and Information) Regulations 2026 (the “Regulations”) will come into force from 1 January 2027, and apply to all new memberships taken out on or after that date. It will not apply to memberships purchased before that date, even when they are renewed after 1 January, though the government has recommended that these be treated as if the new rules do apply as a matter of “best practice”.
Importantly for charities that operate membership and subscription-based arrangements, the publication of the Regulations means that the detail of the previously mooted “cultural and heritage” membership exception is now available. The relevant provisions set out when such offerings will be considered “excluded contracts” for the purposes of the DMCCA and therefore fall outside the scope of the new regime.
The Regulations now clarify that where a membership contract between the charity and the consumer is a) for the supply of goods, services or digital content (note that memberships which only provide newsletter updates in exchange for payment are unlikely to be within scope); and b) is made for the purpose of the consumer viewing either (or both) of the activities set out below that the charity carries out as part of its charitable purpose, it will be exempt from the subscription rules:
“Property” preserved, maintained, kept or created by the charity in the course of carrying out its charitable purpose. “Property” is given a further broad definition as including “buildings, grounds or other land, plants, animals, works of art, artefacts, and property of a scientific nature”, but this is not a closed list.
Performances or films produced or hosted by the charity in the course of carrying out its charitable purpose. “Performances” is further defined as including “scripted or unscripted dramatic or musical performances (including concerts, plays, opera, musical theatre, pantomime), performances of dance, and public presentations by one or more individuals intended to entertain or address an audience”.
The related guidance that has been published alongside the Regulations confirms that the exclusion is intended to capture various membership contracts including visits to museums, galleries, historic properties, heritage sites, artefacts, landscapes, wildlife, gardens, and theatre or festival performances/events involving film, theatre, music, dance or spoken word. It also helpfully confirms that this exemption will also apply where charity membership gives rights to view another charity’s premises or activities, provided those premises or activities fall within the list above.
While this membership exception has been on the cards for some time, charities should resist the temptation simply to assume that they are out of scope. Given the impending deadline for compliance, membership arrangements should be reviewed as a priority to ensure that they do in fact qualify for the exemption. If they don’t, it is important that charities familiarise themselves as a matter of urgency not just with the requirements of the DMCCA (to the extent they haven’t already) but also the further detail and requirements set out in the Regulations, including:
The content required in reminder, cooling-off and end-of-contract notices.
How a consumer should be able to end their membership.
Consumers’ entitlement to refunds when they cancel during a cooling-off period.
In our previous post we also discussed concerns around Gift Aid. For charities whose memberships are caught by the new regime, concerns have been raised that the obligation to offer refunds in certain circumstances under these rules could mean that payments for such memberships cannot qualify for Gift Aid. However, the government guidance deals with this point very concisely, simply stating that compliance with the requirements of this regime does not in itself mean that Gift Aid cannot be claimed, provided that the HMRC’s Gift Aid rules continue to be met.
For more general information about the new subscription regime please read our earlier blog.
If you have any questions please contact Katrina Anderson or Paul Hilder.
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