Regulation 19 Recovery of costs of services supplied
This regulation applies where—
services were supplied to a consumer in exchange for one or more relevant payments under a subscription contract which has been cancelled, and
either all of the conditions in paragraph (2) are met or the condition in paragraph (3) is met.
In the case of a contract cancelled during the initial cooling-off period, the conditions are that—
the trader has met the initial cooling-off information requirement in relation to that contract;
before the supply of the services to the consumer began, the consumer gave their express consent to the trader for the trader to begin the supply of those services;
if the contract is an off-premises subscription contract, the consumer gave that consent in writing on a durable medium.
In the case of a contract cancelled during a renewal cooling-off period, the condition is that the trader has met the renewal cooling-off notice requirement in relation to that period.
Where this regulation applies, the consumer’s liability for relevant payments is extinguished by (T − S), where—
“T” is the total amount of those payments, and
“S” is the amount of those payments that the consumer is liable to pay under the subscription contract in exchange for the services supplied to the consumer during the period beginning with the first day of the cooling-off period during which the contract is cancelled and ending when the contract is cancelled (see section 264(5) of the DMCCA).
Where the trader has not fully supplied to the consumer a service under the subscription contract that was to be supplied (if that contract had not been cancelled), the amount that the consumer is liable to pay in exchange for the service supplied for the purposes of paragraph (4)(b) is to be calculated—
as a proportion of the total amount of the relevant payments under the contract in exchange for the full supply of that service, and
by reference to—
the basis on which the full supply of that service was agreed to be supplied under the contract, and
that service supplied to the consumer.
If the consumer has made any relevant payments to the trader which in total exceed the amount of S, the trader must refund those payments less that amount to the consumer.