Countdown to Compliance: New Rules for Subscription Contracts

Ahead of its implementation, we’ve set out the key changes and updates to be aware of.

The new regime applies to all subscription contracts entered into with a consumer (defined as an individual acting for purposes outside their trade, business, craft or profession). A subscription contract is a contract that either:

• auto-renews (whether for an indefinite or fixed period); or
• if there is a free trial/reduced price after which the contract renews onto a higher payment

What are the key changes to be aware of?

At a high level, the new subscription contract requirements under the DMCC include the following:

• Enhanced pre-contractual information requirements. This includes the need to provide “key pre-contract information” in writing prior to contract formation and separately to the list of “full pre-contract information” required.

• Reminder notices. There will be a requirement to provide regular renewal notices, linked to the customer’s renewal payment dates and the length of the subscription period, reminding customers of key information in relation to their subscription and how to cancel.

• Additional cooling off periods. The DMCC provides consumers with an additional 14 day cooling-off period upon the following subscription contract renewals:
  • when a subscription contract moves from a free trial or introductory offer to the full price; and/or
  • upon a renewal of a subscription contract which renews for a period of 12 months or longer.

These are in addition to the initial cooling off period already provided to consumers at the start of any applicable contract.

• Exiting subscription contracts. Finally, traders must enable consumers to cancel the contract “in a way which is straight forward”.

Further guidance expected Autumn 2025

The DMCC does not currently answer all of the compliance questions that businesses may have, and the Government consulted on the new subscription contracts regime in late 2024 – early 2025. Matthew Gough and Eve England, both partners in the Eversheds Sutherland Consumer Law team, fed into this consultation.

Following its consideration of the consultation results, further guidance is expected from the Government in Autumn 2025, which will cover how the operational and administrative practices of traders using subscription contracts will need to be adapted to ensure compliance with the new regime. We expect this guidance to address the specific practical challenges raised by subscription arrangements and make it  far more reflective of how subscription arrangements typically work, whilst also providing more nuance in terms of how the rules will be applied. This should include:

• the extent to which it is possible and practical for items to be returned in the same condition as they were received;
• whether the items have been dispatched or not;
• how to fairly allocate responsibility and cost for returns; and
• whether goods have certain characteristics which require additional or different rules.

There may also be different guidance in relation to digital content. For example, whether there should be a waiver of a consumer’s right to cancel where they give express consent to supply during the initial cooling-off period (to tackle a consumer ‘binging and cancelling’).

What could CMA enforcement look like?

The Competition and Markets Authority (“CMA”) has already acquired new direct enforcement powers in relation to any breaches of consumer law. These powers cover the ability to enforce non-compliance with the new subscription contracts regime once this regime is implemented.

Further guidance from the CMA in relation to its enforcement of the new consumer subscription contracts regime will likely be published prior to the implementation of the changes in Spring 2026.

What can you do now

it is important for businesses to have appropriate measures in place to address the risks of non-compliance and to mitigate risk of enforcement action.

Businesses should review the further Government guidance expected in Autumn 2025 when it is published. In the meantime, given the short period until the implementation of the changes, it is important to ensure:

1. Identify all subscription contracts that you enter into with consumers, whether these are for goods, services or digital content. Do these renew automatically and how often do these subscription contracts renew? Consider if the new rules will apply;

2. That you are familiar with the new requirements set out in the DMCC where your contracts are in scope;

3. That appropriate business teams are lined up. The new regime will require changes to your webpages, checkout process and standard consumer communications, such as notices and confirmation emails. Which teams are responsible for these functions, what information may you require from them to carry out a gap analysis of compliance, and are these teams aware of the expected deadlines to implement changes?

4. Consider what adjustments or additions to your operational processes would be required (for example, reminder notices may not currently be sent to consumers at all).

5. Review of consumer terms and conditions to ensure compliance with the pre-contractual information requirements and include details of additional cooling off periods.

6. Ensure that consumer-facing teams are aware of the changes and what new rights consumers will have to ensure consumers are not misled about their rights when contacting you.

How can we help

Eversheds Sutherland’s dedicated Consumer Law and Competition, Trade & Foreign Investment teams, who have extensive experience of dealing with the CMA and of  cross-sector regulatory investigations, are together uniquely placed to support businesses in providing coordinated advice on black-letter consumer law with significant on-the-ground enforcement experience. Please reach out to a member of the team if you would like to discuss what the banned practices means for your business and how to implement appropriate measures.

Further reading

• Fake reviews now expressly banned under new UK consumer law
• UK's Digital Markets and Consumers Act podcast series
• The UK's CMA consults on its draft direct enforcement guidance and rules
• UK Digital Markets, Competition and Consumers Bill moves one step forward to being adopted
• A new dawn for UK competition law: significant reforms on the horizon
• The impact of the Digital Markets Competition and Consumer Bill on enforcement
• A new Dawn for UK Consumer Law: Countdown to consumer law changes under the DMCC in Spring 2025