Cooling Off or Cutting Off? The UK Consumer Act 2024 and Future of Charitable Memberships

December 5, 2025

By Lauren Stein

With reduction of government funding to the arts being an perennial issue, museums and other institutions rely on subscriptions for building up operating budgets. In the United Kingdom, Digital Markets, Competition and Consumers Act 2024 (DMCC) became law on May 24, 2024, introducing reforms to consumer protection and competition law.^[1] Officially described as an “Act to provide for the regulation of competition in digital markets . . . to make provision relation to the protection of consumer rights and to confer further such rights; and for connected purposes,” the DMCC represents one of the most significant overhauls of UK consumer law in recent years.^[2] It updates and replaces the Consumer Protection from Unfair Trading Regulations 2008 law and imposes increased transparency requirements and enhanced rights for consumers, particularly in relation to subscription contracts.^[3]

On April 6, 2025, the unfair commercial practice provisions of the DMCC were enacted, strengthening the consumer enforcement regime administered by the United Kingdom Competition and Markets Authority (CMA).^[4] A key area of reform lies in Part IV, Consumer Rights and Disputes, Chapter Two, which concerns subscription contracts. Specifically, chapter two imposes duties on traders in relation to subscription contracts, provides rights for consumers if those duties are breached, and provides rights for consumers to cancel subscription contracts during cooling-off periods.^[5]

Under the DMCC, a subscription contract is defined as a “contract between a trader and consumer for the supply of goods, services or digital content by the business to the consumer in exchange for payment by the consumer.”^[6] Notably, these contracts renew automatically for a fixed or indefinite period of time, and the consumer becomes automatically liable for each renewal.^[7] Additionally, the subscription contract sets out the rate for the supply of goods, services, or digital content for a specified period, after which the consumer remains liable for continued payments.^[8] Importantly, the DMCC affirms the consumer’s right to terminate such a contract.^[9]

The DMCC also grants consumers two distinct cancellation periods: an “initial cooling-off period” and a “renewal cooling-off period.”^[10] The initial cooling-off period for a contract begins on the “day the contract is entered into” and ends “at the end of the period 14 days beginning with the day after the day on which the contract is entered into.”^[11] In comparison, a contract under which goods are supplied ends 14 days after the “day after the day on which the consumer receives the first supply of goods under the contract.”^[12]

In connection with these rights, traders are required to provide consumers with a notice of the cooling-off period.^[13] This cooling-off notice must include that the “subscription contract is continuing, that the consumer has a right to cancel the subscription contract during the cooling-off period to which the notice relates, when that period begins and ends, [and] how the consumer may exercise the right to cancel.”^[14] The notice must additionally state the circumstances under which the consumer could lose the right to cancel, as well as the consequences of cancellation, such as refund entitlements or reasons why a refund may be reduced.^[15]

The cooling-off notice must be issued “on the first day of the renewal cooling-off period to which it relates or as soon as reasonably practicable after that day, [and] separately from the giving of any other information.”^[16] Through these provisions, the DMCC ensures that consumers are given clear information and the opportunity to cancel subscription contracts and obtain refunds within the prescribed time frames.

At first blush, the DMCC’s cooling-off provisions appear beneficial to consumers; they allow shoppers to try subscription services with minimal risk. However, the law has raised concerns among museums and cultural charities, whose financial models rely heavily on annual memberships. On July 31, 2025, the heads of major cultural organizations such as the National Trust, Tate, and Historic Royal Palaces, wrote to Prime Minister Sir Keir Starmer warning the new legislation jeopardizes the entire relationship “between government and civil society.”^[17] The letter, led by Hilary McGrady, Director-General of the National Trust, and leaked to The Times, argued “[n]ot only has [the DMCC legislation] put at risk our ability to claim gift aid on memberships, but it creates onerous new burdens.”^[18]

Importantly, the signatories identified a “loophole:” under the proposed cooling-off period, people could “join charities as members and enjoy benefits, such as free entry to sites, for a two-week period before claiming substantial refunds for the rest of the year.”^[19] Since charitable membership models are worth hundreds of millions of pounds annually, such behavior could significantly disrupt cash flow and undermine the financial sustainability of cultural institutions, especially given that state funding for the arts declined over the last fifteen years and charities increasingly rely on membership schemes.^{[20] [21]}

The letter adds that the public benefit cultural organizations deliver “as a result of the relationship between us as charities and our members has long been reflected in law . . . differentiating between charitable memberships and subscriptions for commercial services such as gym memberships, and acknowledging their status as charitable donations, not subscriptions to goods or services.”^[22]

For example, an individual could buy an annual Tate membership for £120, which allows unlimited entry for a member and guest, access to members-only rooms, dedicated member hours, and a 10% discount on the shop.^[23] Under the DMCC, a consumer could join, visit the museum five times with a guest during the 14-day cooling off period, and then receive full refund, effectively gaining up to £220 in exhibition access at no cost.^[24]

While government officials like government minister Justin Madders have defended the DMCC as an act that will protect “small businesses, save consumers money, [and] boost innovation and drive growth,” the cultural sector remains wary.^[25] As reported by The Times, a government spokesperson stated the government’s “plans to protect consumers from rip-off subscriptions will not unfairly affect charities, and [the government] continue[s] to engage closely with [museums and cultural institutions] to understand their concerns.”^[26]

Some museums have already incorporated DMCC-style provisions into their membership policies. For example, the British Museum membership’s terms state a consumer may request a refund of their subscription by notifying the membership team in writing within 14 days of purchase.^[27] The refund, however, is subject “to deduction of the value of any benefits used within this period.”^[28]

Despite museum concerns, no formal legislative exemption for charitable organizations has yet been introduced.

Comparative Approaches to Cooling-Off Periods

United States

The United States provides a more limited cooling-off framework. The Federal Trade Commission allows consumers three days to cancel certain sales made at one’s home, workplace, dormitory, or at a seller’s temporary location.^[29] The Cooling-Off Rule does not apply for goods or services not mainly for personal, family, or household use.^[30] Additionally, the Cooling-Off Rule does not apply to sales made entirely online, by mail, or telephone and sales needed to meet an emergency.^[31]

Museum subscriptions are mainly for personal, family, or household use, and thus fall outside this rule. Indeed, membership dues to qualifying charitable organizations (such as a museum) are tax-deductible to the extent that the payment “exceeds the fair market value of the benefits the member is entitled to receive in return for the payment.”^[32] Thus, while consumers cannot generally refund such memberships, they gain a tax incentive instead.

In October 2024, the Federal Trade Commission also adopted a “click-to-cancel” rule requiring sellers to make cancellation as easy as enrollment.^[33] The rule is part of the FTC’s ongoing review of the 1973 Negative Option Rule, which the agency “is modernizing to combat unfair or deceptive practices related to subscriptions, memberships, and other recurring-payment programs in an increasingly digital economy where it’s easier than ever for businesses to sign up consumers for their products and services.”^[34] While the initiative targets unfair subscription practices, charitable organizations are exempt.

European Union

The European Union’s Consumer Rights Directive (2011/83/EU) similarly provides a 14-day cooling-off period for most distance and off-premises contracts.^[35] However, museums and charitable organizations are typically excluded.
Under Article 9, consumers may withdraw from a service contract within 14 days without providing a reason or incurring costs. Yet Article 16 lists exceptions, including “fully-performed services, where the consumer gave prior consent and acknowledged they’d lose their right once performance was complete.”^[36]

Museum membership terms across the EU vary accordingly. For instance, the Rijksmuseum (Amsterdam) allows withdrawal from its “Friendship” membership within 14 days of joining, while the Uffizi Gallery (Florence) explicitly states that the subscription fee is non-refundable.”^[37]
Furthermore, Directive (EU) 2023/2673, which amends the Consumer Rights Directive, now requires traders entering into distance contracts to provide a specific “withdrawal function” to make cancellation straightforward.^[38]

Conclusion

The DMCC represents a bold effort to strengthen consumer rights and modernize competition law in digital markets. Yet its uniform approach to subscription contracts has inadvertently placed pressure on the UK’s cultural and charitable sectors, which rely on membership models distinct from commercial services.

Other jurisdictions, such as the United States, differentiate between charitable contributions and consumer transactions, which may offer a blueprint for more nuanced regulation. Unless the UK introduces similar guidance or exemptions, museums and heritage organizations may continue to bear financial burdens that threaten their ability to sustain public access to art and culture.

Balancing robust consumer protection with the preservation of charitable sustainability will remain a key policy challenge as the United Kingdom continues to enforce and update the DMCC.

About the Author:

Lauren Stein is a law student at Wake Forest University School of Law and an intern with the Center for Art Law for the 2025-2026 academic year. She is currently pursuing a career in art law in New York.

Suggested Readings: 

Alistair Hardaker, National Trust, Tate Warn Government of ‘Crippling’ Membership Rules, MUSEUMS AND HERITAGE ADVISOR (Aug. 20, 2025), https://museumsandheritage.com/advisor/posts/national-trust-tate-warn-government-of-crippling-membership-rules/.

Gareth Harris, Cultural Organisations Warn UK Government of ‘Crippling’ Changes to Membership Legislation, THE ART NEWSPAPER (Aug. 29, 2025), https://www.theartnewspaper.com/2025/08/29/uk-museums-warn-government-of-crippling-changes-to-membership-law.

Select References:

1. Ashley Borthwick et al., Digital Markets, Competition and Consumers Act 2024 Explained: The CMA’s New Enforcement Toolkit (June 17, 2025), https://www.womblebonddickinson.com/uk/insights/articles-and-briefings/digital-markets-competition-and-consumers-act-2024-explained-cmas. ↑
2. Digital Markets, Competition and Consumers Act 2024, 2024 c. 13 (UK) https://www.legislation.gov.uk/ukpga/2024/13/introduction. ↑
3. DMCC Act, Part III: Significantly Strengthening UK Consumer Protection Laws and Enforcement, COOLEY (July 24, 2024), https://www.cooley.com/news/insight/2024/2024-07-23-dmcc-act-part-iii-significantly-strengthening-uk-consumer-protection-laws-and-enforcement; New UK Consumer Law Regime Comes Into Force, COOLEY (April 14, 2025), https://www.cooley.com/news/insight/2025/2025-04-14-new-uk-consumer-law-regime-comes-into-force. ↑
4. New UK Consumer Law Regime Comes Into Force, COOLEY (April 14, 2025), https://www.cooley.com/news/insight/2025/2025-04-14-new-uk-consumer-law-regime-comes-into-force. ↑
5. Digital Markets, Competition and Consumers Act 2024, 2024 c. 2 (UK) https://www.legislation.gov.uk/ukpga/2024/13/introduction. ↑
6. Id. at § 254. ↑
7. Id. ↑
8. Id. ↑
9. Id. ↑
10. Id. at § 265. ↑
11. Id. ↑
12. Id. ↑
13. Id. ↑
14. Id. ↑
15. Id. at § 266. ↑
16. Id. ↑
17. Id. ↑
18. Id. ↑
19. Id. ↑
20. Id. ↑
21. Id. ↑
22. Alistair Hardaker, National Trust, Tate Warn Government of ‘Crippling’ Membership Rules, MUSEUMS AND HERITAGE ADVISOR (Aug. 20, 2025), https://museumsandheritage.com/advisor/posts/national-trust-tate-warn-government-of-crippling-membership-rules/. ↑
23. Tate Shop, Membership (last accessed Oct. 1, 2025), https://shop.tate.org.uk/christmas-gift-membership. ↑
24. How Much Does an Exhibition Ticket Cost?, THE TATE (last accessed Oct. 1, 2025), https://www.tate.org.uk/about-us/frequently-asked-questions/ticketing. ↑
25. Sanderson, supra n. 18. ↑
26. Id. ↑
27. Membership Terms and Conditions, BRITISH MUSEUM (last accessed Oct. 1, 2025), https://www.britishmuseum.org/terms-use/membership. ↑
28. Id. ↑
29. Federal Trade Commission, What is the FTC’s Cooling-Off Rule? (last accessed Oct. 1, 2025), https://consumer.ftc.gov/node/78374#what. ↑
30. Id. ↑
31. Id. ↑
32. Marsha Shaines, Tax Rules: What’s the Deal?, AMERICAN MUSEUM MEMBERSHIP CONFERENCE (last accessed Oct. 1, 2025), /https://www.americanmuseummembership.org/uploads/1/2/6/9/126966245/2011_museum_membership_and_tax_rules.pdf. ↑
33. Federal Trade Commission Announces Final “Click-to-Cancel” Rule Making it Easier for Consumers to End Recurring Subscriptions and Memberships, FED. TRADE COMM’N. (Oct. 16, 2024), https://www.ftc.gov/news-events/news/press-releases/2024/10/federal-trade-commission-announces-final-click-cancel-rule-making-it-easier-consumers-end-recurring. ↑
34. Id. ↑
35. Consumer Rights Directive, EUROPEAN COMMISSION (last accessed Oct. 3, 2025), https://commission.europa.eu/law/law-topic/consumer-protection-law/consumer-contract-law/consumer-rights-directive_en; 2022 O.J. (L 304/64) Ch. 1, Article 9(2). ↑
36. 2022 O.J. (L 304/64) Ch. 1, Article 16. ↑
37. Terms and Conditions, RIJKSMUSEUM (last accessed Oct. 3, 2025), https://www.rijksmuseum.nl/en/footer/terms-and-conditions; Become a Member, Uffizi Gallery (last accessed Oct. 3, 2025), https://www.amicidegliuffizi.it/en/become-a-member/. ↑
38. Mark Booth, et al., New EU Rule Requires Easy “Cancel Contract” Button for Online Sales (July 17, 2025), https://www.jdsupra.com/legalnews/new-eu-rule-requires-easy-cancel-4333652/. ↑