Clarity for the new UK consumer subscription contract regime

In April 2026 we wrote here about the UK Government’s consultation on the subscription-related provisions of the Digital Markets, Competition and Consumers Act 2024 (DMCCA), the outcome of which was that secondary legislation and guidance would be prepared in advance of the regime taking effect.  In August 2026 the UK Government announced that the regime would come into force in January 2027  (UK consumer reforms speed up: subscription regime accelerated, pricing practices next in line? | Freshfields)

On 19 October 2026 the UK Government laid before Parliament a draft of the Consumer Subscription Contracts (Cancellation and Information) Regulations 2026 (SCRs). It also published draft guidance on the new regime (Draft Guidance), which gives businesses further information on what the regime will look like in advance of the 1 January 2027 implementation deadline. 

The UK subscriptions contract framework

The SCRs contain “the necessary provisions to implement” Part 4, Chapter 2 of the DMCCA on subscription contracts. These provisions are not yet in force but are expected to be by 1 January 2027.  They  build on the existing protections in the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 and create new rights for consumers covering pre-contract information, renewal reminders, exit from subscription contracts, and cooling-off rights. 

In addition, to the extent any contractual terms in an in-scope subscription contract contravene the new regime, they are not enforceable. 

Scope of the new regime

The regime will apply to all business-to-consumer subscription contracts (unless specifically excluded) entered into on or after 1 January 2027, irrespective of whether the contract is entered into online, over the phone or in person. Certain types of contracts are excluded, such as those for the supply of regulated utilities and financial services. 

The new rules will not apply to existing contracts that auto-renew on or after 1 January 2027 (although the Draft Guidance states it would be “best practice” for consumers to receive protections that are still consistent with the new rules, irrespective of when the contract was first entered in to). 

Even where the applicable law of a subscription contract is not UK law, the contract will still be subject to the regime if the contract otherwise has a close connection with the UK. 

The new rules on consumer subscriptions introduced by the DMCCA and the SCRs are lengthy, prescriptive and complex. They are summarised below. 

Pre-contract information 

• Key pre-contract information: prescribed information about the contract (including auto-renewal, the subscription period, length of free trials and the amount and frequency of payments) must all be given together and in clear language, and as close as possible before the consumer commits to the contract. 
• Separate and additional ‘full’ pre-contract information: a more detailed set of prescribed information about the contract (and which includes the key pre-contract information) must separately be provided to the consumer as close as possible before the consumer commits to the contract. 

Reminder notices

Reminder notices (comprising a range of prescribed information about the subscription, and upcoming renewal and payment) will need to be given to consumers before certain renewal payments are taken, so consumers can decide whether to stop the auto-renewal.  In general they will be required before a free trial or discounted price period ends, once every 6 months for rolling weekly or monthly subscriptions, and (multiple times) before a contract renews for a period of 12 months or more.  There are additional requirements as to format and timing (broadly, a reasonable period before renewal, so that the consumer has adequate time to decide about whether to end the subscription contract). 

Cancellation and cooling-off rights 

• Right to cancel for breach of implied term: certain duties on businesses are established by the regime as implied contractual terms which - if breached - give the consumer a right to, without penalty, cancel the contract within a certain period (such as the duty to give the consumer the key pre-contract information and reminder notices).  If a consumer cancels in this scenario the contract ends immediately, neither party is required to perform future obligations, and the consumer may be entitled to a refund.  
• Cooling-off periods: unless waived (as is possible in some cases e.g. for new subscriptions for digital content that is accessed/consumed immediately), a 14-day cooling-off periods after the contract starts, after trial or discounted price periods end, and once a contract auto-renews for a period of 12 months or longer.  During these periods a consumer can cancel the contract without a penalty. 
• Cooling-off notices: cooling-off notices, explaining the consumer’s right to cancel, must also be sent at each renewal that triggers a cooling-off period. 
• Refunds: the Draft Guidance also explains the expectations in respect of refunds where a consumer cancels during a cooling-off period. The new rules vary depending on the goods/services/contract involved, but for e.g. digital content a consumer who cancels in a renewal cooling-off period (as opposed to the initial cooling-off period) will be entitled to a pro-rated refund. 

Timing of renewal payments

• Alignment between renewal payment and new contract periods: under the new rules, a consumer should not become liable for a renewal payment before the new contract period it covers has started. To the extent any terms purport to do so, such terms are not enforceable. Generally, this means that attempts to take payment before the date of renewal will be invalid.

Exiting subscriptions 

• Straightforward exit: it must be straightforward for a consumer to bring the contract to an end at any time (though in some cases the contract will validly provide that the contract ends at some future point which means the consumer still receives the goods or services). The consumer must be able to exit the contract without having to take steps that are not reasonably necessary.  This may mean that marketing intercepts/retention offers, requirements to complete feedback forms before the consumer can terminate and other practices that create unnecessary friction on exit may be unlawful. 
• End-of-contract notices: once a consumer has terminated the contract, the business will need to send them a notice so they have a record of their exit. Among other things, this will need to identify clearly and prominently when the contract will end. 

Enforcement

Consumer subscriptions have been on the Competition and Markets Authority’s (CMA) and the Government’s agenda for many years. While they have recognised the benefits and convenience that subscriptions can bring, they have also expressed concern about ‘subscription traps’ – consumers paying more than they expect to if e.g. a free trial turns into a paid subscription without warning,  contracts renew without warning, renewal prices are unexpectedly high or if it’s unreasonably difficult to exit the contract or turn off auto-renewal. The new regime is intended to tackle all these issues and more.

Breaches of the new regime may attract significant regulatory attention and exposure, including significant financial penalties, compliance orders and consumer redress.  The CMA has said its focus in the early months of the regime “will be on supporting businesses to get this right to help drive the best outcomes for consumers” but also that this does not mean there will be any deferral of enforcement of the regime. It will consider “genuine efforts to comply” with the new rules when deciding whether to take action.

Get in touch

If you have questions on the new subscription rules, please reach out to a member of the team or your usual Freshfields contact. You can also subscribe to our DMCCA client toolkit for further updates and insights.