On 2 April 2026, the government announced plans for secondary legislation to bring in new rules governing consumer subscription contracts under the Digital Markets Competition and Consumers Act 2024 (DMCCA) and published the response to its November 2024 consultation on the new regime. Crucially, the government now expects the regime to commence in Spring 2027 – a further delay from the previous target of Autumn 2026 (already an extension from original plans).
The delay will be particularly welcomed by those subscription services whose development roadmaps have a long lead time. The key substantive point is that for cooling off periods the government has chosen "Option 2" from its previous consultation meaning that (i) initial cooling-off periods and refunds will remain as under the existing regime (including a waiver for digital content) and (ii) traders can withhold a proportionate amount of the subscriber's payment when they cancel in the renewal cooling-off periods by giving only a proportionate refund.
In addition, it's worth noting that the government will not take forward the specific proposals that the prescribed information in the reminder notice and end-of-contract notice must be given upfront so that it is the first information the consumer sees.
What's the issue?
The DMCCA was passed in May 2024. One of its most significant changes to consumer protection law was the introduction of a new regime around subscription contracts. Much of the detail around compliance was, however, left to be introduced under secondary legislation and accompanying guidance so the regime did not come into force on enactment of the legislation. With the publication of the government's response to the consultation on the regime, we now have more detail around how it will work.
Who is caught by the new regime?
The DMCCA captures subscription contracts between a trader and a consumer for the supply of goods, services or digital content in exchange for payment (free services and those paid for only with provision of data are therefore excluded), and which either:
- automatically recur for an indefinite period or for a fixed period, automatically incurring liability and which have a right to cancel, and/or
- have a free or discounted trial, auto-renewing at a price or higher rate after the trial period and which have a right to cancel before the (higher) charge applies.
There is a long list of excluded contracts, such as those for insurance and financial services.
Traders will still be subject to enforcement action where based in the UK regardless of where their customers are based. Similarly, traders who offer subscription services to UK consumers will be caught be the Act regardless of where they are based.
There are a number of obligations on in-scope traders covering pre-contractual information, cooling-off periods, cancellation rights, repayment of refunds, reminder and information notices. These are likely to involve significant changes to customer journeys and trader processes (read more).
What has the government announced?
The government has said it will bring forward Regulations for:
- Initial cooling-off period refunds – these will be broadly consistent with the existing Consumer Contracts Regulations (CCRs), including a waiver for digital content.
- Renewal cooling-off period refunds – these will cover the 14-day period after the end of a trial period or after auto-renewal of a 12 month contract, and will allow for a cancellation right and right to a proportionate refund.
- New exclusion – there are a number of types of contract already excluded from the scope of the subscription regime set out in the DMCCA itself (including financial services and certain utilities contracts). The government now intends to add exclusions for certain memberships of charitable, cultural and heritage organisations.
- Information and notices – the new rules will ensure information and notices are coherent and consistent.
- Technical operational detail – this will focus on ensuring the regime is not only consistent for consumers but also with the CCRs as far as possible.
What next?
We're expecting the secondary legislation to be published shortly – the consultation response says the government will legislate "when parliamentary time allows". The government has also confirmed it will be publishing guidance.
In-scope businesses will be relieved to see that they have a year to prepare for compliance and that the government has focused on aligning with the CCRs, albeit the outcome on cooling off periods is less generous to traders than had been hoped. There has been considerable uncertainty around what exactly the new rules would entail so clarity is welcome but, beyond that, businesses will need sight of guidance to help them implement some of the more complex requirements.
