Heritage bodies warn consumer law loophole could 'cripple' charity income
Heritage bodies warn consumer law loophole could 'cripple' charity income

Leading heritage organisations, including the National Trust, Tate, Historic Royal Palaces and the Victoria & Albert Museum, have urged the government to close a loophole in new consumer rights legislation that they warn could leave them severely out of pocket.

The Digital Markets, Competition and Consumers Act (DMCCA) introduces a two-week cooling-off period for charity memberships. Under the rules, a person could purchase a membership, use it to gain free entry to paid exhibitions or heritage sites, and then cancel within the period for a full refund — effectively receiving those visits for nothing.

In a letter to the prime minister, seen by The Times, the organisations argue that charities should be treated differently from commercial businesses to protect a revenue stream worth hundreds of millions of pounds each year. A National Trust spokesperson said membership had long been treated as a charitable donation, and that the legislation would add to the financial pressures facing charities in the current economic climate.

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The concern is illustrated by the example of a National Trust family membership, which costs £168.60. A family could visit several sites within two weeks — visits that would normally cost upwards of £100 — then cancel and receive a full refund. Similar risks apply to galleries that offer members free access to paid exhibitions.

A government spokesperson said ministers were engaging closely with charities on the issue, and insisted that the consumer protections against “rip-off subscriptions” would not unfairly affect them. The DMCCA was introduced by the previous Conservative government and has been implemented under the current administration.

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