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New rules, expected to come into force from spring 2027, will make it easier for people to avoid costly subscription traps.
The rules will mean:
• Clear and simple information must be provided before any subscription is taken out.
• Reminders will be issued before free or discounted trials end, or before annual (or longer) contracts automatically renew.
• Cancellations must be straightforward, including online cancellation options for subscriptions set up online.
• A new 14-day cooling-off period will apply after a free or discounted trial ends, or when an annual (or longer) contract renews.
The government has confirmed that initial cooling-off rights and refunds will remain broadly consistent with existing Consumer Contract Regulations. This includes retaining a waiver for digital content.
For the cooling-off refund period on renewals, consumers will be entitled to a full or proportionate refund if they choose to cancel. Proportionate refunds will allow businesses to be compensated for the proportion of contract services or digital content already supplied.
Certain memberships relating to charitable, cultural and heritage organisations will be excluded from the new rules.
Businesses that generate revenue from subscriptions should monitor how these regulations develop over the coming year.
