Digital Markets, Competition and Consumers Act 2024

282 Meaning of “consumer savings scheme contract”

(1) For the purposes of this Chapter, a consumer savings scheme contract is a contract—

(a) under which—

(i) a consumer makes payments to a trader,

(ii) the trader credits those payments to an account that is held by the trader for the consumer (“the consumer’s account”), and

(iii) the payments credited to the consumer’s account provide a fund for the consumer to redeem as goods, services or digital content in accordance with the terms of the contract,

(b) to which one or more of subsections (2), (3) or (4) applies, and

(c) which is not an excluded arrangement (see section 284).

(2) This subsection applies to a contract if it contains terms which have the effect of restricting the times at, or periods of time during, which the consumer may redeem funds from the consumer’s account.

(3) This subsection applies to a contract if it contains terms which have the effect of incentivising the consumer to redeem, or refrain from redeeming, funds in the consumer’s account at a time, or during a period of time, specified in the terms of the contract.

(4) This subsection applies to a contract if it is marketed or advertised in such a way as to encourage the consumer to redeem, or refrain from redeeming, funds in the consumer’s account at a time, or during a period of time, specified in material used for the purposes of marketing or advertising the contract.