Felicity Forward, a Legal Director in Shoosmiths’ Strategic Commercial Contracts Team, leading its specialist consumer law compliance practice, has supported the charity sector in relation to the Digital Markets, Competition and Consumers Act (DMCC), following the identification of an issue affecting charitable membership models during the development of the legislation.

Published: 15 April 2026
Authors: Felicity Forward

In 2023, while advising a charity client, Felicity identified that the proposed DMCC subscription regime did not clearly distinguish between commercial subscriptions and charitable memberships. As drafted, it risked extending subscription mechanics and broad consumer cancellation rights to arrangements designed to deliver public benefit, rather than private services.

Felicity raised the issue with the Charity Finance Group (CFG), which convened key stakeholders and led engagement with Government. Felicity supported this work on a pro bono basis, advising charities on the legal risks and potential impact on existing membership and fundraising models, and contributing to the development of potential solutions. This progressed into wider engagement with HMRC and the Department for Business and Trade.

Applying a commercial subscription framework raised significant practical concerns for the sector, particularly in the context of Gift Aid, existing tax relief regimes, and the long-term sustainability of membership-led charities. In the absence of clear guidance, some organisations faced the risk of reduced income, increased regulatory complexity, and, in some cases, uncertainty over whether their membership models could continue at all.

On 2 April, the Government confirmed in its consultation response that charities will be exempt from the DMCC subscription regime, providing clarity and certainty for the sector. This recognises a key distinction: charitable membership is not a commercial subscription, and access to nature, wildlife, arts and culture delivers public benefit rather than a private service.

This is a significant outcome for the charity sector and one that was not assured. It also highlights the importance of early engagement with legislation, and the value of clearly articulating real-world impacts to achieve meaningful change.

Shoosmiths has previously published insight on the DMCC regime and its wider implications, including:

• DMCC: Is the CMA starting to flex its muscles?
• Amazon’s fake review crackdown: A wake-up call for all businesses
• Unlocking Compliance with DMCC: Mastering the E-Commerce Order Journey – Event summary - Shoosmiths Podcasts | Podcast on Spotify

For more information on DMCC and charitable memberships, please contact Felicity Forward, Legal Director, or Anna Sherwood, Senior Associate.