The new rules under the Digital Markets, Competition and Consumers Act 2024

The Digital Markets, Competition and Consumers Act 2024 (DMCCA) introduces new rules relating to subscription contracts between traders and consumers.

The current rules relating to pre-contract information and the right to cancel as required by the Consumer Contracts Regulations 2014 will no longer apply but will be replaced by the new regime which is expected to come into force in the spring of 2026.

The government held a consultation process in relation to this aspect of the DMCCA which closed in February 2025 and the outcome of this consultation is still awaited.

What we know so far

The new rules will apply to contracts:

1. that automatically renew; or
2. that start with a free trial period that then automatically rolls into a binding contract unless the consumer actively cancels.

Under the current Consumer Contracts Regulations, consumers have a 14 day cooling off period in which they can cancel contracts for goods or services and obtain a full refund, subject to certain exceptions. The current proposal is that that in addition to a cooling off period at the beginning of the contract, for any contract that automatically renews after the end of a free trial prior or which renews automatically after a period of 12 months or more there will be an additional 14 day cooling off period starting on the renewal date.

It is also proposed that digital content providers will only have limited rights to by-pass the cancellation rights. The idea being that if the consumer subscribes to a platform and then binges on content during the cancellation period, the provider will not be able to claim that the consumer has waived their right to cancel.

There will be additional obligations on the trader to provide key information to the consumer including in relation to charges, the length of the contract, cancellation rights and how to terminate. Extra information about payment methods and restrictions on delivery must also be given.

For online contracts, before entering in to the contract the consumer must expressly acknowledge that the contract imposes an obligation to pay.

The information must be presented to the consumer in such a way that it easy to read – the consumer must not have to click links or download separate documents in order to view the information.

What can traders start planning for now?

• A process to issue renewal notices to the consumer. These must be given
• Before the expiry of any initial free or cheaper introductory period
• On a six monthly basis where renewal payments are made six monthly or more frequently
• Annually where renewal payments are made less frequently than six monthly.

The renewal notice must indicate to the consumer how much they have paid since the contract was last renewed and how much they commit to paying if they allow the contract to renew.

• A process to issue cooling off notices on the first day of the cooling off period beginning on the first day of the renewed contract – this must be given separately to the renewal notice.
• An easy and straightforward to use process for consumers to exercise their termination or cancellation rights.

Penalties

Traders that fail to comply with the new rules on subscription contracts will run the risk of enforcement action by the Competition and Markets Authority (CMA). The CMA has powers to order the direct payment of compensation to consumers in addition to the imposition of fines of up to £100,000 or 10% of worldwide turnover in the most significant cases non-compliant contracts may also be deemed unenforceable.

If you would like advice or assistance in relation to consumer contracts please contact the Commercial team.