A draft law has been put before the State Duma on the protection of the rights of users of paid digital subscriptions

Pepeliaev Group advises that, on 19 July 2023, a group of deputies put before the State Duma draft law No. 405607-8 (the “Draft Law”) introducing new requirements for sellers (service providers) ensuring that a consumer obtains a certain service on the Internet on a regular basis or has regular access to goods (services) on an Internet website (the “owner of an online service”) based on a subscriber agreement. 

The Draft Law provides for amendments to Russian Law No. 2300-1 “On the protection of consumers’ rights” dated 7 February 1992. 

According to the Explanatory Note to the Draft Law:

• in one fifth of all cases consumers do not receive any relevant notifications from companies that are owners of online services. Such companies claim that they are not obliged to do so; 
• recently, issues have become relevant that involve marketplaces collecting monetary funds from bank accounts (payment instruments) whose details consumers have deleted from the list of the means of payment on platforms. 

The Draft Law is aimed at resolving such issues.  If it is adopted, the  amendments will come into force on 1 March 2024.  

Let us consider the proposed amendments in detail.

1. A mandatory notification that the subscription is extended 

According to the Draft Law, the owner of an online service is obliged, not later that one day prior to the date of the next payment, to send to the consumer an electronic notification regarding the upcoming collection of funds.  Such notification must contain the following information:  

• about the date when the payment will be collected;  
• about a method for the consumer to unilaterally withdraw from the subscriber agreement;   
• a reference to the seller’s (services provider’s) page on a website on which it is technically possible for the consumer to withdraw from the subscriber agreement.

The consumer is entitled to refuse to receive such notifications at any time. 
 
If the owner of an online service collects monetary funds without notifying the consumer, the owner of the online service is obliged to return them to the consumer in full. 

2. A prohibition on collecting monetary funds from a bank card that the consumer has deleted  

The Draft Law prohibits owners of online services from collecting monetary funds from the consumer’s bank accounts (payment instruments) with respect to which the consumer has expressed to the owner of an online service a refusal in electronic form to use the above in settlements. Exceptions involve cases when the consumer expressed the refusal after having acquired the goods (services) for which the payment is being made. 

If details of the consumer’s bank accounts (payment instruments) have been deleted from the user account on the website of the owner of an online service, this means that the consumer is refusing to use such bank accounts (payment instruments) in settlements with the owner of the online service. 

3. Granting additional controlling powers to the Russian Federal Service for Supervision of Communications, Information Technology and the Mass Media and to the Russian Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing

The Draft Law grants to the Russian Federal Service for Supervision of Communications, Information Technology and the Mass Media (abbreviated in Russian to “Roskomnadzor”) the following powers:

• to approve requirements for the form and contents of, and the procedure for the owner of an online service to place on a website page, information as to whether it is technically possible for the consumer to withdraw from the agreement; 
• to exercise control over compliance with the requirements for the form and contents of, and the procedure for the seller to place on an Internet website page, information as to whether it is technically possible for the consumer to withdraw from the agreement.

The Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing (abbreviated in Russian to “Rospotrebnadzor”) is granted the powers to exercise control over whether owners of online services perform the following obligations:  

• to carry out cashless settlements in the form of periodic payments solely subject to the consumer’s consent;  
• to send a prior notification to the consumer regarding the upcoming collection; 
• to comply with the prohibition on collecting monetary funds from bank accounts (payment instruments) with respect to which the consumer undertook actions to refuse their use in settlements. 

What to think about and what to do

Now it is already prudent for owners of online services to bring their activity into line with the planned amendments to the Law on the protection of consumers’ rights.  In particular, we recommend ensuring that obligations are performed to notify consumers that a subscriber agreement is in place and that monetary funds will be collected, and making sure that the data in the rules for using paid subscriptions placed on the online service’s website is in line with the proposed new developments.  

Help from your adviser

Pepeliaev Group’s specialists are ready to provide comprehensive legal support to owners of online services. 
Pepeliaev Group provides the following types of services:

• advising on legal risks;
• providing legal assistance at all stages of the development and implementation of online services; 
• representing a client when dealing with state authorities 
• other services.