UK Subscription Contracts Regime: Key points from the consultation outcome

Current position

The Department for Business & Trade (“DBT”) has published its response to the consultation on implementing the Subscription Contracts Regime under the Digital Markets, Competition and Consumers Act 2024 (“DMCCA”).¹

The regulations themselves have not yet been published. The response sets out intended policy direction, to be implemented through secondary legislation and guidance. The consultation focused on practical implementation issues, not changes to the underlying DMCCA framework.

Policy direction confirmed

The Government intends to implement the regime in a way that largely aligns with existing UK consumer law, rather than introducing a materially more onerous parallel system.

Key points include:

• Initial cooling off period refunds: DBT intends to ensure that refund rights during the initial cooling off period for in scope subscription contracts are consistent with the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (“CCRs”). This includes retaining the existing waiver for digital content, reflecting concerns raised by respondents about the practicality of refunding immediately consumed digital services and the importance of consistency across consumer regimes.
• Renewal cooling off period and refunds: The Government proposes that consumers should have 14 days to cancel where:
  • a free or discounted trial converts into a paid subscription; or
  • a subscription auto renews into a 12 month or longer term.

  Refunds in this period would be full or proportionate, allowing businesses to retain payment corresponding to the proportion of the contract already supplied. For service subscriptions, DBT has confirmed that this proportionate approach will apply where supply has begun, aligning with the CCRs and rejecting alternative models based on usage or loss of refund on first use.

• Charitable cultural and heritage memberships: These memberships will be excluded from the subscription contracts regime, acknowledging their distinct funding models and avoiding additional regulatory burdens on the charitable sector.
• Information and notice requirements: DBT has committed to ensuring that information and notice obligations under the regime are coherent and consistent, with the stated aim of making compliance more manageable for businesses and enabling consumers to understand and exercise their rights effectively.

Next steps

• DBT to bring forward secondary legislation and updated guidance to give effect to these proposals. 
• The practical compliance impact will depend on the final form of the regulations. 
• A more detailed review should be undertaken once draft regulations and guidance are published, particularly for auto renewing and trial based subscription models.

 

¹ Government response to consultation on the implementation of the new subscription contracts regime - GOV.UK