Key points

• Part 4, Chapter 2 of the Digital Markets, Competition and Consumers Act 2024 creates a new regime for subscription contracts, to be brought into force by secondary legislation.
• The government has delayed the start date more than once. Businesses should plan for a commencement no earlier than 2027 and track the latest timetable, but should not wait to begin preparation.
• The regime requires pre-contract information, express consent, reminder notices, a cooling-off period and straightforward exit routes.
• It applies to contracts that renew automatically, including free trials that convert to paid and contracts that renew into a longer term. Many retail membership, replenishment and box programs will fall in scope.
• The CMA can enforce directly and fine up to 10 percent of global annual turnover, so subscription flows are now a board-level risk in the UK.

Background and timing

The 2024 Act gave the UK government power to introduce a bespoke regime for subscription contracts, responding to long-standing complaints about difficult cancellations, forgotten free trials and unexpected renewals. The detailed rules are being set out in regulations, and the Department for Business and Trade has consulted on them. Commencement was initially expected in 2026 and has been pushed back as the government worked through the design of the rules. We advise clients to treat the exact start date as uncertain, plan for the substance as settled in outline, and check the current position before each project milestone.

Which contracts are covered

The regime is aimed at consumer contracts that continue or renew without the consumer taking further action. That includes a fixed term that automatically rolls over, a rolling monthly contract and a free or discounted trial that converts to a paid subscription. It covers digital and physical goods and services. For retailers, typical examples are paid delivery memberships, auto-replenishment of household goods, beauty and food boxes, extended warranties and app-based services.

Businesses should also consider contracts that look like loyalty arrangements. A paid tier of a loyalty program that renews each year is likely to be a subscription contract for these purposes, even if the marketing describes it as a club.

What the rules are expected to require

• Pre-contract information. Key terms, including the price, the length of any minimum term, what happens at the end of a free trial, how to cancel and any reminder notices, must be provided in a clear and prominent way before the consumer commits.
• Express consent. The consumer must actively agree to the subscription terms. Pre-ticked boxes or bundled acceptance will not suffice.
• Reminder notices. Consumers must receive reminders before a free trial or introductory offer converts, before an annual renewal, and in certain other circumstances, with details of how to end the contract.
• Cooling-off periods. Consumers will have an initial cooling-off period after the contract is made, and a further one when a free trial or discount ends and the paid term begins.
• Easy exit. The consumer must be able to end the contract in a straightforward way, using the same channel as sign-up where practical, without obstacles such as mandatory phone calls. Businesses must also give an acknowledgment of the cancellation and explain its effect.

Some of the details, such as the exact timing of reminders and how pro rata refunds are calculated during cooling-off, will turn on the final regulations. Retailers should look closely at those provisions when they are published, since they drive system changes.

How this differs from existing UK law

UK law already requires clear pre-contract information under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, and unfair terms are policed under the Consumer Rights Act 2015. The new regime is more prescriptive and applies specifically to ongoing contracts. It also operates alongside the Act's general unfair commercial practices provisions, which already enable the CMA to fine businesses directly. The CMA has said that subscription practices are an enforcement priority, and some businesses have already faced inquiries.

Operational preparation

The regime's biggest impact is likely to be on systems and customer service rather than contract drafting. We suggest a staged approach:

• Build an inventory of every UK subscription, trial and auto-renewing product, including those operated through third-party platforms or marketplaces.
• Map each enrollment, reminder and cancellation journey, in the app, on the website and by phone, and identify gaps against the expected rules.
• Confirm that billing and customer relationship systems can send reminders on a schedule, handle cooling-off refunds, and record consent.
• Decide whether to adopt a single global standard. Retailers also subject to US auto-renewal laws and EU consumer rules may find a common baseline cheaper to maintain than market-specific flows.
• Train customer service teams on cancellation handling and retention offers, and give them clear scripts.

Contracts, partners and transition

Existing subscribers will not necessarily be outside the regime. The government has indicated that there will be a transition arrangement for existing contracts, but the terms are not final. Companies should avoid a design that treats the existing base as permanently outside any new reminder requirements. Agreements with marketplaces, payment providers and marketing partners should also be reviewed, since the business that markets the subscription and the business that bills for it may both carry responsibility.

Our Consumer Protection team in London, working with colleagues across the United States and Europe, helps retailers design consistent subscription programs and prepare for UK implementation.