Auto-renewal - not in line with CMA
Hi -
I was directed here by the agent, regarding auto-renewal of my Adobe subscription, therefore I'm assuming an Adobe representative will be in touch.
BACKGROUND
I am based in the UK. My monthly-paid annual subscription auto-renewed, and I tried to cancel within 14 days of the auto-renewal. The agent advised that the 14 day 'cooling off' period does not apply to auto-renewals.
LEGAL AND GOVERNMENT CONTEXT
1. Under section 30 of the Consumer Contracts Regulations, the cancellation period ends at the end of 14 days after the day on which the contract is entered into.
2. The Competiton and Markets Authority (the "CMA") recently took enforcement action in the context of ‘subscription traps’ (as part of their McAfee and Norton investigations).
3. In Oct 2021, the CMA released new practical Guidance for businesses offering subscription services, which is based on the CMA's interpretation of consumer law: https://www.gov.uk/government/publications/compliance-principles-for-anti-virus-software-firms/compliance-principles-for-anti-virus-software-businesses-that-use-auto-renewing-contracts
Included within the guidance as being "More Likely to Comply" is: "You provide written confirmation of the length of the renewed contract, how much has been charged, how the customer can terminate and get a refund, and when the next payment will be taken."
As an aside, I further note that the UK government is currently consulting on reforming competition and consumer policy, given the problems surrounding auto-renewal of subscription contracts, and is using the CMA Guidance as a base.
FACTUAL CONTEXT
1. When I received the initial email from Adobe, with the first one-year purchase, it stated: "Cancel your annual subscription before Jun 01 to get a full refund and avoid a fee. You can cancel your subscription anytime via your Adobe Account page or by contacting Customer Support." It is entirely reasonable that a consumer would assume that any terms that apply to an auto-renewal are no less favourable.
2. The renewal email (the "Renewal Notice") states: "This is a reminder that your Acrobat Pro DC subscription will automatically renew within 30 days." The language "renew" reflects that this is a new subscription, not an extension of an existing subscription, therefore, again, it is entirely reasonable to expect that the 14 day cooling off period would apply.
3. There is no information provided in the Renewal Notice that cancellation fees can apply after the initially contracted minimum 12-month term.
4. There is no information provided in the Renewal Notice as to the length of the renewed contract or how the customer can terminate and get a refund.
NEXT STEPS
I understand from your agent that I am now "locked in" to this 12 month auto-renewed contract. I'd be grateful if you could kindly take me through the Renewal Notice and explain how I, as a consumer, was expected to know that this situation would arise, and that the 14 day 'cooling off' period would not apply.
Many thanks
Kirsty
