Payment misinformation: websites will be prohibited from automatically charging subscription fees

The Cabinet of Ministers approved amendments to the law "On Consumer Rights Protection", which will protect people from unauthorized write-offs when paying for online subscriptions, Izvestia found out. A customer of any service, whether it's an online movie theater, a loyalty program, or other services with a monthly payment, will be able to ban the use of his bank card details if he has deleted it from his personal account. And sellers will have to ensure that such a ban is possible. In addition, consumers will get rid of complicated subscription cancellation procedures, since termination of the contract and termination of writing off periodic payments will be clearly regulated by law, experts believe. When such amendments will come into force, see the Izvestia article.

How will online subscriptions be regulated?

The draft law, which sets out the rules for writing off periodic payments for online settlements, was approved on July 7 by the government commission on legislative activity (the document is available to Izvestia). These amendments to the law "On Consumer Rights Protection", in particular, suggest that the seller of the service will be prohibited from using the bank card details that the buyer previously provided to the service to receive payments for online subscriptions.

This means that if a consumer has deleted a bank card from their personal account or the service's application, the company has no right to continue debiting money from it, said Daniil Chernykh-Aipov, lawyer, member of the Council of the Moscow Regional Branch of the Russian Bar Association, Deputy Chairman of the Sulim and Partners Bar Association.

"The changes establish a clear legal mechanism to protect against unauthorized write—offs," the expert emphasized. — This is especially relevant in the context of the development of digital platforms and subscription services, where cases of continued charges, even after the user has deleted the card from the system, have become very frequent and very annoying.

The bill in question was submitted to the State Duma in the summer of 2023 by a group of deputies, after which it was finalized taking into account the comments of the government. In September 2024, the document was adopted in the first reading.

The main purpose of the original draft law was to consolidate guarantees for consumers using paid digital subscriptions based on subscription agreements, explained Vladimir Gruzdev, Chairman of the Board of the Russian Bar Association.

"In particular, it was proposed to impose an obligation on performers to provide potential consumers with information about the terms of such an agreement for review before concluding the relevant subscription agreement," he noted.

The new regulation does not apply to the provision of additional services related to mobile communications.

— All this will help to avoid unnecessary write-offs of funds from the bank accounts of residents who use digital subscriptions. Citizens have filed similar complaints before. It is necessary to regulate the provision of such services by law and protect the rights of users," said Vyacheslav Volodin, Chairman of the State Duma.

During a speech at the plenary session, Anton Nemkin, one of the authors of the bill, a member of the Committee on Information Policy, Information Technologies and Communications, noted that digital services do not fully notify subscribers about the services provided, payment terms and termination methods.

"Our amendments are aimed at providing additional guarantees to users, as well as clarifying the responsibilities of such service providers, who must provide full information about the terms of the service and how to cancel it before concluding a contract," he said.

Vladimir Gruzdev added that the text of the original draft law has been significantly revised and its current version suggests clarifying that when paying for online subscriptions, the contractor is prohibited from using the details of his bank accounts previously provided by the consumer or the data of his electronic means of payment, in respect of which the consumer has expressed a refusal to use in settlements, to receive periodic payments.

In this case, the contractor will be obliged to ensure that the consumer's refusal is accepted, including in electronic form.

"If approved, the amendments will become legally binding on September 1, 2025," added the Chairman of the Board of AYUR.

Why do we need restrictions?

The changes will bring significant benefits to consumers, said Alexander Andropov, Head of the Tax Practice at BVMP Law Firm and a member of the Association of Tax Consultants.

— They protect against unauthorized charges, which is especially important in the context of the popularity of automatic subscription renewal, — he said. — In addition, consumers gain more control over their finances, as companies will not be able to use card data after the termination of the contract. Also, clear information and a simplified opt-out procedure increase the transparency of interaction with the services.

The existing scheme of charging money for subscriptions that suddenly pop up even on user cards previously withdrawn from a particular service has "already become a byword," said Valery Korneev, chairman of the Union of Users of Digital Platforms.

"Banning all old schemes and old subscriptions that are unexpectedly renewed by unknown people will draw a line under the semi—fraudulent habits of services that are spoiled by the under—regulation of the digital services sector," he added.

According to Alexander Andropov, the Ministry of Finance pointed out the risk of an increase in the cost of services due to additional restrictions for companies, but Rospotrebnadzor and other agencies consider consumer protection a priority.

In addition, consumers will get rid of complicated procedures for canceling subscriptions, since the procedure for terminating the contract and terminating the write-off of periodic payments will be clearly regulated by law, said Ilya Pasenko, senior associate at a.t.Legal law firm.