The Digital Markets, Competition and Consumers Act 2024 (DMCCA) is designed to strengthen consumer rights, promote fair competition, and regulate digital markets in the UK. One of the headline changes is the introduction of stricter requirements for businesses offering subscription contracts. In this article, we outline the new rules on subscription contracts and how we can help.
The DMCCA and subscription contracts
Subscription contracts are business to consumer agreements for the supply of goods, services and / or digital content, where consumers pay a recurring fee for that supply. Those contracts can be for a fixed or indefinite period, and they can also consist of an initial free or cheaper period, followed by payments at a higher rate. These contracts often renew automatically unless the consumer cancels. Examples of subscription contracts include streaming services, gym memberships, software licences, food delivery boxes and magazine subscriptions.
Key changes and how business can prepare
The DMCCA introduces several new requirements for subscription contracts, including:
- Clearer Pre-Contract Information: Businesses must provide clear, prominent information about the subscription, including price, renewal terms, and cancellation rights, before the consumer signs up.
- Reminders Before Renewal: Businesses must send timely reminders to consumers before a free trial ends or before a contract auto-renews, which will also include a reminder of their right to cancel.
- Simpler Cancellation: Cancelling a subscription must be as easy as signing up.
- Cooling-off rights: In addition to the right to cancel 14 days after entering into a subscription contract, there will be an additional right to cancel on expiry of any free or discounted period and on renewal of a contract for 12 months or more.
The new subscription rules will be implemented in Spring 2026. Business can prepare by reviewing and updating their subscription terms and conditions and updating their customer journeys, including renewal reminders. Those changes often involve updates to online storefronts and back-end systems, so businesses should start planning for the changes now.
The new cooling-off rights mean that some existing subscription models may need to be re-designed and training their staff on the new requirements.
How we can help?
Our commercial team is ready to support you through these changes. We can:
- Review and update your subscription contracts and terms.
- Advise on compliant sign-up and cancellation processes.
- Provide training for your staff.
- Help you implement effective consumer communication strategies.
- Offer ongoing support to ensure you remain compliant as the law evolves.
If you have any questions about the DMCCA or would like to discuss how these changes may affect your business, please contact the Broadfield UK commercial team. We are here to help you navigate the new landscape with confidence.
