The UK government is consulting on the detail of the new subscription contracts regime that is due to take effect in April 2026. The long lead time is a warning signal that there is plenty of devil in the detail... If you would like any legal advice on the potential impact of the new regulations and guidance, please get in touch.
Primarily, it's of course important to understand what is meant by "subscription contract". However:
- Just because a contract does not meet the definition does not mean that it's unregulated, just that it likely remains regulated under the existing Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (CCRs).
- There is also a very long list of exemptions for contracts that meet the definition, but are regulated under existing regulatory instruments other than the CCRs.
Key obligations include:
- consumer reminder notices at key points, including before a free or introductory trial comes to an end.
- easy-to-use ways to cancel/terminate:
- within an initial cooling-off period;
- on expiry of any initial free or discounted period; and
- if the contract renews for a period of 12 months or more.
- implied contract terms imposing DMCCA compliance obligations on traders, breach of which gives the consumer a further statutory right to cancel the contract.
The latest consultation covers:
- The consequences of cooling-off cancellation right, including consumer rights to a refund, the trader’s right to recover goods supplied;
- Consumer rights to a refund after 'cancellation' for a trader’s breach of duty;
- Timing of refunds;
- Restrictions on contractual terms that might affect a consumer’s contractual right to terminate;
- Information notices to be given by traders.
- proposed guidance for traders on presenting pre-contract information and enabling consumers to easily exit subscription contracts.
If you would like any legal advice on the potential impact of the new regulations and guidance, please get in touch.
