The UK government has published its response to its consultation on the new consumer subscription contracts regime introduced by the Digital Markets, Competition and Consumers Act 2024 (DMCCA). While the DMCCA itself set the framework, it left a number of important details to be addressed through secondary legislation and guidance. The response provides an early indication of how the government intends to approach some of the more complex aspects of subscription contracts, confirms a more measured approach than some businesses feared, and pushes implementation back again (this time to spring 2027) giving businesses additional time to prepare.

Background: what is changing under the DMCCA in relation to subscription contracts?

The DMCCA introduces a standalone subscription contracts regime designed to give consumers greater transparency and control over auto‑renewing contracts. At a high level, it targets:

  • contracts that automatically renew for an indefinite or fixed period; and
  • contracts that include free or discounted trials which roll into paid subscriptions.

Please see our previous blog, here, which give more detail on the changes to the rules surrounding subscription contracts.

Deliberate alignment with existing consumer law

A consistent theme running through the response is the government’s intention to align DMCCA secondar legislation with the existing Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (CCRs), rather than the creation of a radically different subscription‑only regime.

This will be reassuring for businesses already familiar with CCR compliance, particularly those operating across multiple consumer law regimes. The government has expressly rejected several more onerous proposals that consultees felt would be impractical or disruptive.

Cooling-off rights and refunds: what has been confirmed?

One of the most closely watched issues was how cooling off rights would apply to subscriptions for digital content.

Following consultation, the government has confirmed that:

  • The initial 14 day cooling off period at the point of entering a subscription will mirror the CCR position.
  • Existing CCR rules on refunds and waivers for digital content will be retained, acknowledging concerns about the feasibility of refunding immediately consumed digital services.
  • A second 14 day “renewal” cooling off period will apply where:
  1. a free or discounted trial converts into a paid subscription; or
  2. a subscription automatically renews for a period of 12 months or longer.

During this renewal cooling off period, businesses will be entitled to provide proportionate refunds where supply has already begun, rather than being required to refund in full in all cases. This approach directly responds to concerns raised during consultation about heightened “binge and cancel” risks for subscription services

Returns and refunds: sector-specific rules

The response also confirms how funds will be handled across different categories of subscription:

  • Goods: full refunds will generally apply where goods are returned, with specific carve‑outs for perishable or bespoke items.
  • Services: where supply has already started, the trader may retain an amount proportionate to what has been provided.
  • Digital content: existing CCR protections, including the ability to rely on a consumer waiver, will continue to apply.

“Easy exit” and cancellation rights

What types of contract are excluded?

Certain types of subscription contract will fall outside the scope of the DMCCA including contracts within the insurance and financial sectors, and certain charitable, cultural and heritage memberships. Please see our blog, here, discussing the charitable exemption more thoroughly.

Timescales

The revised regime is expected to come into force in Spring 2027.

What should businesses be doing now?

While the new regime is now not expected to come into force until spring 2027, businesses should use the additional time to prepare.

Businesses offering subscription models should:

  • map existing subscription sign-up, renewal and cancellation journeys and identify possible areas of non-compliance;
  • plan for system and UX changes required to support “easy exit” obligations (this will be particularly important for businesses who offer subscriptions for online purchase);
  • if proportionate payments will be relevant for your business, consider how such payments will be calculated on early termination by a consumer;
  • if platforms / services are provided and/or maintained by third parties, speak to service providers about DMCCA compliance to ensure they are aware of the rule changes and taking steps to ensure compliance;
  • audit your renewal reminders and customer notices to ensure they are clear, easy to understand, and sent in compliance with new presentational / timescale requirements in DMCCA; and
  • monitor the publication of draft secondary legislation and guidance.

Given the DMCCA grants the CMA significant enforcement powers (including the ability to impose substantial administrative fines for breach), compliance with the subscription rules will be a high-priority area once the regime goes live. Early preparation will help minimise disruption and the risk of non-compliance.

More information

You can access the Government’s response to the consultation on the UK Government website.

You can also read our update on the proposed exemption for certain charitable and heritage subscription contracts.

Brodies is working with many clients to prepare for the new rules coming into force. For more information on the DMCCA and how your business can comply with the new subscription rules, or consumer protection laws more generally, please contact Martin Sloan or your usual Brodies contact.

Contributors

Martin Sloan

Partner

Catriona Salton

Senior Solicitor