New UK Subscription Contract Rules Effective Jan 2027
Businesses offering subscriptions to UK consumers must update disclosures, reminders, and cancellation processes to comply with stricter requirements or face potential fines of up to 10% of global turnover.
The UK government has accelerated the timetable for new consumer subscription contract rules under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), with an effective date now set for January 2027. The regime targets 'subscription traps' by imposing stricter transparency and cancellation obligations on businesses serving UK consumers, regardless of where the business is based. Key requirements include providing prescribed information upfront, sending renewal reminders, and offering a new 14-day cooling-off period after a free trial converts to a paid subscription or when a contract renews for 12 months or more. The rules also mandate a straightforward online cancellation process. The Competition and Markets Authority (CMA) will enforce the regime and can impose fines of up to 10% of a company's global annual turnover for non-compliance. Affected businesses should begin auditing their consumer journeys, disclosure language, and cancellation workflows to prepare for the changes, and watch for forthcoming implementation guidance from the CMA.