Explanatory note

These Regulations make amendments to primary and secondary legislation in consequence of the coming into force of Chapter 2 of Part 4 of the Digital Markets, Competition and Consumers Act 2024 (c. 13) (“the Act”) and the Consumer Subscription Contracts (Cancellation and Information) Regulations 2026 (S.I. 2026/XXXX).

Chapter 2 of Part 4 of the Act gives consumers protections in relation to subscription contracts, including rights to cancel and related requirements on traders.

Part 1 of the Schedule amends section 6(3) of the Unsolicited Goods and Services Act 1971 and section 1(2) of the Unsolicited Services (Trade and Business Directories) Act (Northern Ireland) 2010 so that those provisions also refer to Chapter 2 of Part 4 of the Act. This ensures that sections 3 and 3B of the 1971 Act and the rules in section 1 of the 2010 Act on liability to pay for directory entries, do not affect any consumer rights under Chapter 2 of Part 4 of the Act.

Part 2 of the Schedule amends regulation 11(1) of the Financial Services (Distance Marketing) Regulations 2004 so that where a consumer cancels a subscription contract by exercising the right to cancel under section 264(1) of the Act during the initial cooling-off period, a related credit agreement that is terminated as a consequence of the cancellation is treated in the same way as a related credit agreement terminated under regulation 38(1) of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.

Part 2 also amends the Legislative and Regulatory Reform (Regulatory Functions) Order 2007 so that when regulators and local authorities exercise regulatory functions under Chapter 2 of Part 4 of the Act, they must have regard to the statutory principles in section 21 of the Legislative and Regulatory Reform Act 2006 and to the code of practice issued under section 22 of the same Act.

In addition, Part 2 amends the Co-ordination of Regulatory Enforcement (Regulatory Functions in Scotland and Northern Ireland) Order 2009 so that local authority functions under Chapter 2 of Part 4 of the Act in Scotland and Northern Ireland fall within the primary authority scheme under Part 2 of the Regulatory Enforcement and Sanctions Act 2008, in the same way as the functions under Chapter 1 of Part 4 of the Act.

An impact assessment has not been prepared for this instrument as no, or no significant, impact on the private, voluntary or public sectors is foreseen.