Guide
Consumer rights compliance for digital content sellers
Your legal obligations under the Consumer Rights Act 2015 and Consumer Contracts Regulations 2013 when selling software, apps, games, music, video, e-books, or other digital content to consumers.
If you sell digital content to consumers - whether that is apps, software, games, music downloads, streaming services, e-books, or online video - you have specific legal obligations under two pieces of legislation:
- Consumer Rights Act 2015 (CRA 2015), Part 1 Chapter 3: sets quality standards your digital content must meet and defines the remedies consumers have when it falls short
- Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (CCR 2013): gives consumers a 14-day cooling-off period for online sales, with specific rules about when that right is lost for digital content
Unlike goods, digital content has no physical existence and cannot be 'returned' in the conventional sense. This creates unique obligations - and a critical trap: if you supply digital content before the cancellation period ends without obtaining valid consumer consent, you may be legally required to provide refunds even after a consumer has downloaded or streamed your product.
These obligations cannot be excluded by your terms and conditions.
What counts as digital content?
The CRA 2015 defines digital content as data produced and supplied in digital form. This covers:
- Downloaded software - desktop applications, mobile apps, games
- Streaming services - subscription music, video-on-demand
- Digital games - console downloads, PC games, in-app purchases
- E-books and digital publications - e-books, audiobooks, digital magazines
- Online content libraries - stock photo subscriptions, font licences
- SaaS products supplied to consumers - productivity tools, personal finance apps
The Act applies when a consumer pays for digital content, or when digital content is bundled with paid goods or services.
Important: If your digital content is provided on a physical medium (a DVD or USB drive), it is treated as goods under the Act, not digital content.
Quality standards your digital content must meet
Every supply of digital content to a consumer includes implied statutory terms that you cannot exclude:
Device damage liability
Section 46 of the CRA 2015 creates a specific liability for digital content sellers: if your digital content causes damage to a consumer's device or other digital content on that device, you are liable if the damage would not have occurred had you exercised reasonable care and skill.
This applies to software that installs malware, updates that cause crashes or data loss, and app permissions that damage other data on the device.
The consumer's remedies are repair or compensation within 14 days, via the original payment method, with no fee charged. You cannot limit this liability in your terms of service.
Remedies when digital content is faulty
When digital content does not conform to statutory quality standards, consumers have a two-tier remedy system:
Tier 1: Right to repair or replacement
The consumer can require you to repair or replace the digital content. You must do this within a reasonable time, without significant inconvenience, at your cost.
Tier 2: Right to a price reduction
If repair or replacement is impossible, or if you fail to provide it within a reasonable time, the consumer can claim a price reduction of an appropriate amount - which can be up to the full price. You must process any refund within 14 days.
The 6-month presumption
If digital content fails to conform within 6 months of supply, it is presumed to have been faulty at supply. The burden of proof falls on you.
Note: Unlike goods, there is no short-term 30-day right to reject for digital content. The remedy system starts with repair or replacement.
The 14-day cancellation right and when it is lost
When you sell digital content via a website, app, or other distance channel, the Consumer Contracts Regulations 2013 give consumers a 14-day cooling-off period. For digital content, this period starts the day after the contract is made.
How to obtain valid consent for immediate supply
To lawfully supply digital content before the 14-day cancellation period ends - and extinguish the consumer's right to cancel - you must obtain valid express consent from the consumer before beginning supply.
What valid consent looks like in practice
App store or direct download: Display an unticked checkbox with wording such as: "I agree to the immediate supply of this digital content and acknowledge that I lose my 14-day right to cancel once supply has begun."
Streaming service subscription: Include an explicit consent step - not buried in terms and conditions - where the consumer actively confirms they want the service to begin immediately.
What does NOT constitute valid consent:
- Terms and conditions deemed accepted by clicking 'Continue' - this is passive acceptance
- A pre-ticked checkbox - the consumer must actively opt in
- A notice buried in a long document - consent must be explicit and prominent
If you fail to obtain valid consent: the consumer retains their full 14-day cancellation right even after the content has been downloaded or streamed.
Automatic renewals and subscription terms
If you offer subscription digital content, your contract terms must make the renewal mechanism clear. Under the CRA 2015 unfair terms provisions, terms that automatically extend a contract unless the consumer gives notice by an unreasonably early deadline are on the Schedule 2 grey list of potentially unfair terms.
From 6 April 2025, the Digital Markets, Competition and Consumers Act 2024 introduced enhanced subscription contract obligations, including cooling-off rights at annual renewal points.
SaaS subscriptions sold to consumers
Software as a Service (SaaS) products sold to consumers attract the full Consumer Rights Act 2015 digital content framework.
Consumer vs business distinction: Your terms may attempt to classify all customers as businesses, but this does not override consumer protections where the actual user is an individual using the product for personal purposes.
Service outages: Extended downtime or functional failures may give consumers a remedy under section 43 (repair or replacement) or section 44 (price reduction). A service level agreement does not override statutory rights.
Price changes: Terms that allow price increases without giving the consumer the right to cancel are potentially unfair under the CRA 2015 Schedule 2 grey list.
Enforced by the CMA and Trading Standards. From 6 April 2025, the CMA can impose fines directly up to 10% of global turnover.
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Audit your digital content against quality standards
Review your product against satisfactory quality, fitness for purpose, and as-described standards. Document what functionality and compatibility you advertise and ensure your product delivers this.
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Implement valid consent for immediate supply
Add an unticked checkbox at checkout that the consumer must actively tick before downloading or streaming begins. Ensure your order confirmation email records this consent.
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Establish a 14-day refund process for failed consent
Create a process to handle refund requests from consumers who cancel within 14 days where valid consent for immediate supply was not obtained.
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Conduct security and device damage testing
Before releasing updates or patches, test for potential device damage. Establish a vulnerability disclosure process and include regression testing.
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Review subscription renewal terms
If you offer subscription digital content, review your renewal terms against the CRA 2015 unfair terms provisions and the DMCC Act 2024 subscription requirements.