Soon, services will be required to refund funds for subscriptions without warning.
The Russian government has generally approved a draft law that provides for mandatory notification of users about the next payment for digital subscriptions. However, the Cabinet of Ministers demanded to finalize some points of the initiative that contradict the current legislation or contain vague concepts.
The bill was submitted to the State Duma by deputies of various factions, including Pyotr Tolstoy (United Russia“, Leonid Slutsky (LDPR) and Vladislav Davankov (New People). The authors of the initiative want to protect the rights of consumers who are faced with a situation when services do not warn them about subscription renewal and charge money without consent.
According to the proposed amendments, service providers must notify customers about the upcoming debit one day before the next payment. If money is debited without notice, the service must return it. The service must also provide the service until the end of the prepaid period, if the user has refused to continue renewing the subscription. In addition, it is forbidden to debit money from a customer's bank card that was previously linked to the online store if the customer deleted it from the site.
The new rules are expected to come into force on March 1, 2024. This is necessary to adapt the services to new requirements. So far, the draft law does not provide for administrative liability for violations of the norms, but it may be introduced later, based on the results of monitoring.
The Government of the Russian Federation noted that the concept of the draft law as a whole deserves attention, but needs to be finalized. In particular, it is necessary to adjust certain wording to eliminate legal uncertainty and valuation concepts, such as" regular receipt"," regular access", and also taking into account that periodic payments are not a form of non-cash payments. It is also planned to finalize the clause related to the moment of termination of the subscription agreement. The government explained that"the composition of legal relations in which it is necessary to apply the procedure provided for in the draft law, and the content of such a procedure, require additional study."
The Cabinet of Ministers stressed that additional regulation in this area should not lead to an unjustified increase in the cost of subscriptions, as this will negatively affect the interests of consumers. The government's response says :" When finalizing the draft law, it is necessary to take into account that additional regulation in this area should not lead to an unjustified increase in the cost of subscriptions, as this will negatively affect the interests of consumers who get access to diverse and high-quality services at affordable prices."
The government also pointed out that the terms of entry into force of the innovations should be brought into line with the provisions of the federal law “On Mandatory Requirements in the Russian Federation”. According to it, mandatory requirements should come into force either from March 1 or September 1 of the corresponding year, but not earlier than 90 days after the official publication of the document, unless otherwise established by federal law, presidential decree or an international treaty.
The problem with paid subscriptions is relevant for many Russians who use various online services. According to statistics, about 18% of users have active subscriptions that they don't use. In addition, there are fraudulent schemes that allow you to steal money from bank cards through phishing sites with subscriptions to buy tickets to concerts and performances, or through fleeceware-applications that offer a free trial period, and then charge an unreasonably expensive subscription.
The Russian government has generally approved a draft law that provides for mandatory notification of users about the next payment for digital subscriptions. However, the Cabinet of Ministers demanded to finalize some points of the initiative that contradict the current legislation or contain vague concepts.
The bill was submitted to the State Duma by deputies of various factions, including Pyotr Tolstoy (United Russia“, Leonid Slutsky (LDPR) and Vladislav Davankov (New People). The authors of the initiative want to protect the rights of consumers who are faced with a situation when services do not warn them about subscription renewal and charge money without consent.
According to the proposed amendments, service providers must notify customers about the upcoming debit one day before the next payment. If money is debited without notice, the service must return it. The service must also provide the service until the end of the prepaid period, if the user has refused to continue renewing the subscription. In addition, it is forbidden to debit money from a customer's bank card that was previously linked to the online store if the customer deleted it from the site.
The new rules are expected to come into force on March 1, 2024. This is necessary to adapt the services to new requirements. So far, the draft law does not provide for administrative liability for violations of the norms, but it may be introduced later, based on the results of monitoring.
The Government of the Russian Federation noted that the concept of the draft law as a whole deserves attention, but needs to be finalized. In particular, it is necessary to adjust certain wording to eliminate legal uncertainty and valuation concepts, such as" regular receipt"," regular access", and also taking into account that periodic payments are not a form of non-cash payments. It is also planned to finalize the clause related to the moment of termination of the subscription agreement. The government explained that"the composition of legal relations in which it is necessary to apply the procedure provided for in the draft law, and the content of such a procedure, require additional study."
The Cabinet of Ministers stressed that additional regulation in this area should not lead to an unjustified increase in the cost of subscriptions, as this will negatively affect the interests of consumers. The government's response says :" When finalizing the draft law, it is necessary to take into account that additional regulation in this area should not lead to an unjustified increase in the cost of subscriptions, as this will negatively affect the interests of consumers who get access to diverse and high-quality services at affordable prices."
The government also pointed out that the terms of entry into force of the innovations should be brought into line with the provisions of the federal law “On Mandatory Requirements in the Russian Federation”. According to it, mandatory requirements should come into force either from March 1 or September 1 of the corresponding year, but not earlier than 90 days after the official publication of the document, unless otherwise established by federal law, presidential decree or an international treaty.
The problem with paid subscriptions is relevant for many Russians who use various online services. According to statistics, about 18% of users have active subscriptions that they don't use. In addition, there are fraudulent schemes that allow you to steal money from bank cards through phishing sites with subscriptions to buy tickets to concerts and performances, or through fleeceware-applications that offer a free trial period, and then charge an unreasonably expensive subscription.
