Regulation 22 Cancellation during the initial cooling-off period: effect on ancillary contracts

(1)

This regulation applies where a consumer cancels a subscription contract (referred to for the purposes of this regulation as the “main subscription contract”) during the initial cooling-off period.

(2)

Any ancillary contracts in relation to the cancelled main subscription contract are automatically cancelled.

(3)

If an ancillary contract is a subscription contract, the consumer’s liability for payments that have arisen under that cancelled contract must be determined in accordance with this Part.

(4)

When the main subscription contract has been cancelled, the trader in relation to that contract must inform any other trader with whom the consumer has an ancillary contract in relation to the main subscription contract that the main subscription contract has been cancelled.

(5)

An “ancillary contract” in relation to a main subscription contract means a contract that is ancillary to the main subscription contract and under which a consumer acquires any goods, services or digital content related to the main subscription contract, where those goods, services or digital content are provided—

(a)

by the trader in relation to the main subscription contract, or

(b)

by a third party on the basis of an arrangement between the third party and that trader.

(6)

For the purposes of this regulation, contracts falling within paragraph 2 of Schedule 22 to the DMCCA (insurance and financial services) may be ancillary contracts.