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Writer's pictureRosie Burbidge

Are subscription businesses ready for stricter regulations?

Updated: Nov 27


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The The Digital Markets, Competition, and Consumers Act (DMCC) introduces sweeping changes to subscription contracts. This will impact businesses across various sectors, from software to cosmetics. One key issue is that subscription-based services that auto-renew must now follow stricter regulations to protect consumers.


This new DMCC regime will take effect by Spring 2026 but it is important for businesses to start preparing now as there are serious consequences for non-compliance.


What do the new UK subscription regulations mean in practice?

Under the DMCC, businesses must provide clear pre-contract information to consumers. This includes details about auto-renewal, payment schedules, and how to cancel. Additionally, businesses must send regular reminders, particularly after a free trial or discounted period, and at least every six months thereafter. This transparency helps ensure consumers know exactly when they’ll be charged and how to opt-out if needed.


Pre-contract information and reminders

Businesses must offer clear, written pre-contract information that explains the contract’s terms. This information must be easily accessible and not hidden within lengthy terms and conditions. Furthermore, reminder notices must be sent at key intervals — before the initial payment, before each renewal, and every six months during the contract. These notices should prominently display important details, such as renewal dates and any price changes.


Cooling-off periods

The DMCC mandates a 14-day cooling-off period during which consumers can cancel their subscription without penalty. This applies not only when they first sign up but also after any renewal following a free or promotional period. Importantly, this gives consumers more freedom to exit a contract if they change their mind, particularly after an enticing discount period has ended.


Simple cancellation procedures

One of the Act's key reforms is simplifying the cancellation process. Consumers must be able to end their subscriptions easily, without unnecessary hurdles. For online contracts, businesses must prominently display cancellation instructions and allow cancellation with a single communication. Additionally, once a cancellation request is made, businesses are required to send an “end of contract notice” and refund any overpayments.


What happens if you ignore the Regulations?

The consequences for non-compliance with the subscription regulations are significant. Businesses that fail to meet the DMCC’s requirements face hefty fines — up to £300,000 or 10% of their global annual turnover. In addition to financial penalties, breaches of key duties, such as cooling-off periods, can lead to criminal offences.


Take action now

Although the DMCC does not come into force until 2026, subscription businesses need time to prepare. Reviewing terms and conditions, updating customer processes and ensuring staff are trained on the new rules will save potential legal and financial headaches down the road. This proactive approach also builds consumer trust - a key competitive differentiator.


To find out more about the issues raised in this blog contact Rosie Burbidge

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