Q&As

Is a trader obliged to inform consumers about any automatic renewal of a contract for a magazine subscription?

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Published on LexisPSL on 09/01/2017

The following Commercial Q&A provides comprehensive and up to date legal information covering:

  • Is a trader obliged to inform consumers about any automatic renewal of a contract for a magazine subscription?

Is a trader obliged to inform consumers about any automatic renewal of a contract for a magazine subscription?

It will be necessary to consider the rules on unfair contract terms in relation to this point. Please see CMA 37 guidance at para 5.19.1 as above, and paras 5.19.3 and 5.19.4.

‘A term which could have the effect of automatically renewing a contract is more likely to be fair if the renewal term is properly brought to the consumer’s attention before entering the contract (see part 2 of the guidance under the heading "the Transparency test") and the contract requires that the consumer is sent a reminder a reasonable time before the renewal takes effect, provided it is accompanied by appropriate information covering, in particular:

  1. the terms of the proposed renewal of the contract, and

  2. any steps consumers are reasonably required to take to notify the

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