UK auto-renewal contracts: acceptable and unfair terms

If your business, whether it is a start-up, SME or multi-national, provides consumer-based services via a subscription model, or plans to do so, it is essential that your company understands and complies with auto-renew provisions.  

UK auto-renewal contracts: acceptable and unfair terms

If your business, whether it is a start-up, SME or multi-national, provides consumer-based services via a subscription model, or plans to do so, it is essential that your company understands and complies with auto-renew provisions.  

UK auto-renewal contracts: acceptable and unfair terms

If your business, whether it is a start-up, SME or multi-national, provides consumer-based services via a subscription model, or plans to do so, it is essential that your company understands and complies with auto-renew provisions.  

Automatic renewal and consumer rights – how can businesses comply? | Leathes Prior

The use of a subscription model to sell to consumers has become increasingly popular over the years. You can now purchase a subscription for just about any product you like, from TV programs, to shaving products, to coffee and beer. According to Yahoo Finance, the average consumer now has five retail subscriptions so it is clear that this is an increasingly popular model.

Consumer Law Focus: Subscription Auto-Renewals, New CMA Guidance

Subscription-based contracts are common. They provide certain benefits to businesses, such as offering predictable revenue. These types of agreement often contain ‘auto-renewal clauses’, whereby the agreement will auto-renew unless the consumer cancels.Customers need to be able to make a fully informed choice about auto-renewal.Customers should be reminded about auto-renewal in good time before it happens.

UK Auto-Renewal Consumer Subscription Terms Come Under Scrutiny | JD Supra

The UK government is considering responses to its proposed reforms to auto-subscription rules for consumer contracts, as part of a broader consultation on reforming UK competition and consumer policy.

Complying with the new auto-renewing contract principles- Frettens Solicitors in Christchurch, Ringwood, Bournemouth

On 19 October 2021, the Competition and Markets Authority (CMA) published new principles for anti-virus software businesses that use automatically renewing contracts with consumers in the UK.

Unfair Contract Terms

This Briefing Note highlights the key issues your business needs to consider if you use contracts that impose minimum contract terms and early termination charges on consumers.

Expanding consumer rights in relation to subscription services

United Kingdom The UK Government is readying proposals to substantially expand consumer rights in relation to subscription contracts. If passed into law, these proposals will require businesses to highlight additional information to consumers pre-contract, give consumers a choice as to whether their subscriptions automatically renew or not, send more reminders to consumers about their ongoing subscriptions, and make it easier to terminate subscriptions.Consumers are not always provided with the information they need to manage their subscriptions effectively.Cancelling subscription contracts is not always straightforward and this acts as barrier to consumers from taking control of their payments.

Are your auto-renewal terms accessible, fair and transparent? - Coffin Mew

Auto-renew contracts are coming under scrutiny following the increase in online shopping and emerging consumer trends during the pandemic.May 19th, 2022

Caught in a Trap? Beware Auto-Renewing Contracts

In the UK there are laws to protect consumers from unfair contract terms. However, commercial parties have less protection and are generally free to bind themselves to whatever terms without fear of court intervention.

UK government plans to update consumer rights

Radar - September 2021 – 2 of 4 Insights

Compliance Principles for anti-virus software businesses that use auto-renewing contracts

The Competition and Markets Authority (CMA) has published new Compliance Principles for anti-virus software businesses that use automatically renewing contracts with consumers in the UK. These Principles are set out below.if they have to go looking for it, for example by clicking on hyperlinksin an End User Licence Agreement (EULA)where it is obscured by other information, for example the customer needs to scroll through other, more prominent, information to get to it in the small print at the bottom of the webpage, it is buried in a long paragraph, or it is hard to read, in a smaller or less visible fontFurther details of our enforcement action against McAfee and Norton and the undertakings that they provided can be found on the Anti-virus software case page. ↩↩↩When designing your price promotions you should take into account, in particular, the CTSI Guidance for traders on pricing practices and the sections of the UK Code of Non-Broadcast Advertising and Direct & Promotional Marketing that relate to prices, as amended from time to time. ↩Note you must meet your pre-contract obligations under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013/3134 (‘CCRs’) which cover, amongst other things, general information about the contract. These are outside the scope of these principles which focus on auto-renewal (in particular Regulation 13 of CCRs, which cover information that must be provided before making a distance contract). For example, where a 14 day statutory right to cancel the contract after it is entered into exists, customers must be made aware of the conditions, time limit and procedures for exercising that right (Regulation 29 of the CCRs). ↩This may be in addition to other customer support channels such as telephone, email and web chat that the customer can easily access, if they prefer, to request to turn off automatic renewal. ↩↩