Consumer contracts: subscription contracts

by Practical Law Commercial

A note providing guidance on the new regime for consumer subscription contracts established by the Digital Markets, Competition and Consumers Act 2024 (DMCCA). This note explains how the DMCCA subscription regime will replace the information and cancellation provisions of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (SI 2013/3134) for in-scope contracts. It covers the definition of a subscription contract, the new obligations for traders regarding pre-contract information, requirements for issuing reminder notices before auto-renewal, and the introduction of new cooling-off periods. The guidance also addresses the requirement for traders to provide a straightforward termination process, the consequences of cancellation, and a consumer's right to cancel for certain breaches. This note outlines the new rules, which are anticipated to commence in spring 2027, and discusses proposals from the Department for Business and Trade (DBT) consultation on the secondary legislation needed to complete the regime.