Cancel culture: UK subscription contracts regime takes shape

Introduction

Consumer subscription contracts have come under increasing scrutiny in the UK recently as government and regulators seek to address concerns about fairness and transparency. On 2 April 2026, the Department for Business and Trade published its response to the public consultation on implementing the Digital Markets, Competition and Consumers Act 2024’s (“DMCC Act”) new subscription contracts regime (the “Response”), which will now apply from early 2027 (one year later than initially planned).

The regime expands existing protections under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (“CCRs”), with a focus on pre-contract information, cooling-off periods, cancellation rights and refunds. The government has promised to ensure that for contracts covered by the new rules, initial cooling-off rights and refunds will be consistent with the CCRs, and that the technical operation of the regime will be consistent with the CCRs where possible to avoid divergent compliance requirements.

In a letter to The Rt Hon Liam Byrne MP (published ahead of the Response), the Secretary of State for Business and Trade set out plans to strengthen consumer protection enforcement. The letter highlights five initiatives, including: (i) reviewing the statutory duties imposed on local Trading Standards; (ii) examining how consumers seek and obtain redress; (iii) asking the Law Commission to consider an opt-out collective actions regime for consumer claims; (iv) enhancing the Citizens Advice consumer service through increased funding and potential use of AI to free up advisers for complex cases; and (v) encouraging “smart data” schemes. The Secretary of State and the Chief Secretary to the Prime Minister have also written to other Secretaries of State and heads of regulators, requesting further actions to address perceived consumer harms (particularly contractual traps, pricing transparency and enforcement). These actions are expected to be consolidated into a government-wide consumer action plan later this year.

This follows the CMA’s first enforcement actions under the DMCC Act, summarised in our article here, and its landmark £473,000 fine against Euro Car Parks for failing to respond to a statutory information notice, set out in our article here.

The scale of the subscriptions market

According to the Response, there are over 155 million active subscriptions in the UK (costing around £26 billion per year). The average person holds around three subscriptions and spends approximately £500 per year. The government estimates that 9.7 million “unwanted subscriptions” remain active, costing consumers around £1.6 billion per year, often because consumers are rolled over from a free or discounted trial into a paid subscription, or because contracts auto-renew.

The government expects the regime to tighten how subscriptions are sold and to deliver around £400 million of consumer benefit per year. 

Pre-contract information and information notices

Under the proposed regime, traders will be required to provide consumers with clear pre-contractual information before they sign up to a subscription. Businesses must also send information notices at key points in the subscription lifecycle, including reminder notices, cooling-off notices and end-of-contract notices. Reminder and cooling-off notices must be given in writing on a durable medium (i.e., addressed to the recipient and accessible for future reference, such as by email, PDF or SMS), and their purpose must be immediately apparent. End-of-contract notices must present prescribed information “more prominently” than any other information given at the same time. This rolls back the earlier proposal that prescribed information must be the first thing a consumer sees; the Response concludes that a “more prominent” test is sufficient.

Cooling-off periods

Consumers will benefit from two 14-day cooling-off periods during which they can cancel without penalty. There will be an initial cooling-off period when the consumer enters the contract, broadly mirroring the CCRs, but this is to be extended to all subscription contracts (not only those concluded at a distance or off-premises as in the CCRs). In addition, consumers will now also benefit from a new renewal cooling-off period after a free trial ends or after a contract of 12 months or more auto-renews. 

If a trader fails to inform the consumer about cooling-off rights, the cooling-off period can be extended (up to 12 months) and will end 14 days after the trader remedies the breach, consistent with the CCRs.

Easy exit and fair contractual terms

Consumers must be able to exit subscription contracts without unnecessary hurdles. For example,  traders may make retention offers or seek feedback during cancellation, but must not frustrate or unreasonably prolong the process. While forthcoming guidance is expected to clarify what a compliant exit journey looks like, key details remain unsettled.

Upcoming legislation will also seek to prevent terms that make it disproportionately difficult to cancel contracts that auto-renew, and to ensure consumers are not liable for payment before a rolling contract renews for a new period.

Refund rules

The refund framework under the new regime varies depending on the product the subscription relates to.

• Goods: Where goods are returnable (for example, a football), the consumer will receive a full refund upon return. For perishable or bespoke goods, a full refund is available if the consumer cancels before the goods are supplied, but as with the CCRs, there is an exception to the cooling-off right once such goods are supplied, such that the trader may deduct the cost of those goods (and any delivery costs). The Response confirms that legislation will not introduce the concept of a “dispatch date” as being the trigger for when the cooling off period no longer applies, and will stick with the term “supply”.
• Services: A consumer who cancels before the service has begun will receive a full refund. If the service has begun or is ongoing (for example, during a renewal cooling-off period), the consumer will receive a proportionate refund, paying only an amount in proportion to the part of the contract that has been performed which is consistent with the current position under the CCRs. This is despite a push from businesses that any refund should take account of other factors, including the extent to which the services were consumed.
• Digital content: The existing “waiver” mechanism under the CCRs will be retained for the initial cooling-off period. This means that where a consumer gives express consent for supply to start immediately and acknowledges that their cooling-off right will not apply, they will lose their statutory right to cancel once supply begins. However, consumers will now also benefit from  the renewal cooling-off period (14 days after a trial or when a 12-month+ contract auto-renews), and will now be entitled to a proportionate refund if they cancel during this period. The government hopes that applying the same renewal refund rules to digital content will make the regime simpler and clearer to interpret, apply and enforce. 

All refunds must be issued without undue delay and within 14 days of cancellation (or 14 days after receiving returnable goods). The government will use guidance, rather than legislation, to address how the refund rules apply to mixed contracts (where a combination of goods, services, and digital content are supplied under a single contract). Where a consumer cancels a primary subscription during a cooling-off period, any dependent ancillary contract will also be cancelled, consistent with the CCRs. 

Remedies for breach

Where a trader breaches certain duties, for example, by failing to send a reminder notice, under the DMCCA Act the consumer will have a right to cancel the contract. In such cases, the consumer is presumed to be entitled to a refund of all payments made from the point the breach becomes “operational” until the consumer cancels. The term “operational” will be defined in the regulations which will also include a specific list of breaches for which a consumer will not need to prove financial loss in order to claim a refund.

Broader landscape

The CMA has shown it is willing to impose significant fines even for procedural failures, and substantive enforcement under the subscription regime is likely to be similarly robust.

On 27 March 2026, the CMA launched five new consumer law investigations into fake and misleading online reviews in the funerals, food delivery and car sales sectors. The CMA has said no conclusions have been reached and expects to provide an update in September 2026. These investigations bring the number of businesses under review using the CMA’s new consumer powers to 14. Since April 2025, certain online review practices (including fake reviews, undisclosed incentivised reviews and hiding negative reviews) have been automatically deemed unfair and unlawful under the DMCC Act, with potential fines of up to 10% of global turnover. 

Commencement and next steps

The government anticipates that the regime will come into force in spring 2027. Secondary legislation will be brought forward, and CMA guidance will follow, but is likely to be subject to consultation. The government also promises to publish guidance to support business implementation. However, the secondary legislation has not yet been drafted, and key practical questions remain (including the content and timing of reminder and end-of-contract notices, what a compliant cancellation journey looks like, and how proportionate refunds should be calculated in practice). Businesses offering subscriptions should begin preparing now. 

CMS Comment 

The government’s consultation response provides some clarity on the direction of travel for the new subscription contracts regime, but it is lacking in practical detail. The secondary legislation has not yet been drafted, and neither had the CMA guidance, which will be critical for operationalising many of the regime’s requirements. For businesses with complex subscription models (for example, those offering bundled goods, services and digital content under a single contract), the reliance on guidance rather than legislation to address mixed contracts adds a further layer of uncertainty.

However, the headline obligations: pre-contract information, reminder notices, cooling-off periods, easy exit, and fair refund mechanisms, are now settled in principle. Businesses should take steps to prepare to ensure that they are well placed to implement the detailed requirements when the secondary legislation and CMA guidance are published. If you would like to discuss any aspect of the new subscription contracts regime, the DMCC Act’s consumer protection provisions, or any related consumer law issue, please do not hesitate to contact one of our specialists.