Alistair Hardaker
Image: Tate Modern exterior. Photo © Tate
Charity heads warn new consumer rights law could allow members to claim refunds after using exhibition access.
The heads of institutions including the National Trust, Tate and V&A, are among those reported to have warned the government that a new ‘cooling off’ period for consumers could have a ‘crippling’ effect on museums and gallery memberships.
The Times reports it has seen a letter sent late last month to Keir Starmer, which warns that a new part of a consumer rights bill “creates onerous new burdens”.
Set to come into force next year, a new part of the Digital Markets, Competition and Consumers Act 2024 is designed to give consumers enhanced cancellation rights for subscription contracts.
The government has delayed these new subscription rules to give businesses time to adjust systems.
But the letter warns that in its current form, it would allow visitors to purchase a membership and use immediate benefits such as free access to paid exhibitions, before filing for a full refund within 14 days.
“Not only has it put at risk our ability to claim gift aid on memberships, but it creates onerous new burdens,” the signatories, led by Hilary McGrady, the National Trust’s director-general, is reported to have written.
“This threatens to cripple the very future value of membership itself as a functional model of income generation for charities with visitor models – currently worth hundreds of millions [of pounds] to charities across the UK every year,” it says.
The Woodland Trust, the Royal Society for the Protection of Birds, the Royal Horticultural Society, the Royal British Legion and the Wildlife Trusts are also reported signatories.
The letter adds: “The public benefit we deliver as a result of the relationship between us as charities and our members has long been reflected in law and by HMRC, 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.”
A government spokesman was quoted: “We are engaging with charities on this issue. The Digital Markets, Competition and Consumers Act does not change the definition of what constitutes a consumer contract.
“Our plans to protect consumers from rip-off subscriptions will not unfairly affect charities, and we continue to engage closely with them to understand their concerns.”
The new subscription contract rules do not start until 2026 at the earliest.
A National Trust spokesperson told Advisor: “Up to now membership has been treated as a charitable donation by law and this is part of a long-held recognition that UK charities are fundamentally different from commercial businesses.
“Charities are currently facing sustained financial pressures, due to the difficult economic climate. This legislation would add to that cost burden and see more charities having to reduce their vital services.
“Just last month the Government made a firm commitment through the Civil Society Covenant to support our sector: closing this loophole would be a clear demonstration of that commitment.”
