Public Affairs

Government responds to the PPA’s call to amend upcoming subscription rules

The PPA advocated for changes to the subscription provisions in the Digital Markets, Competition and Consumers Bill to ensure businesses were not compromised.

Of particular interest to specialist publishers, the Bill’s proposed laws on cancellation and renewals have been significantly altered.

Cancellation

Instead of allowing a consumer to cancel in one “single communication” and “by any means”, subscription providers will have to allow consumers to cancel in a way which is “straightforward”.

This means that publishers will still be able to direct consumers to new deals during the cancellation process. However, for consumers who sign up online, they must also have the opportunity to cancel online and cannot be automatically directed to a call centre. This will mean, in some cases, a change in subscription management services.

Renewal notices

The Government has amended the Bill to avoid a policy that would have resulted in blunt renewal emails that don’t reflect the best of business and consumer experience. While publishers will still be required to send renewal notices, this information can be embedded within emails that give information about the benefits of the service.

However, we note that embedding renewal notices into subscription tech is not straightforward, and in some cases, not immediately possible. We have raised concerns about this with Ministers, who have acknowledged that it is a serious issue. The PPA is asking that the Government and the Competition and Markets Authority work with us to find a solution.

As Press Gazette reported, PPA CEO Sajeeda Merali commented: “We are very happy that the Government has responded to industry concerns pertaining to subscriptions. It shows that they have recognised that the subscription business model is incredibly important, and this is backed up by our own market sector report which showed that subscriptions are the biggest growth area for our publishers. We will continue to engage with the Government and regulator to ensure that the policies are implemented in a way that best meets the needs of both businesses and consumers.  And we will support our members as they adjust and navigate the change in regulatory landscape.”

Once the Bill receives Royal Assent and becomes an Act of law, the Competition and Markets Authority will oversee an implementation phase, where they will determine how to enforce these new rules.

The PPA is committed to continuing close engagement with the Competition and Markets Authority to ensure a transition that is optimal for publishers’ businesses and their audiences who enjoy access to their content.

If you wish to discuss this with our team, please get in touch with our Head of Policy and Public Affairs, Eilidh Wilson, Eilidh.wilson@ppa.co.uk

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