New regulations are set to come into force from Spring 2027, designed to make it easier for consumers to avoid getting caught in unwanted subscription renewals.

The changes are aimed at improving transparency, control, and fairness, particularly where subscriptions roll on automatically or begin with free or discounted trials.

Under the proposed rules, businesses will be required to:

• Provide clear, simple information before a customer signs up to any subscription
• Issue reminders before free or discounted trials end, as well as ahead of auto-renewals on annual (or longer) contracts
• Make cancellations straightforward, including offering online cancellation for subscriptions started online
• Introduce a new 14-day cooling-off period after a trial ends or a contract renews

The intention is to ensure customers are fully informed and able to make active decisions, rather than being passively rolled into ongoing payments.

Cooling-off periods and refunds

The government has confirmed that initial cooling-off rights and refund rules will remain broadly aligned with existing Consumer Contracts Regulations.

This includes:

• A continued waiver for digital content in certain circumstances
• The ability for consumers to receive either a full or proportionate refund during the cooling-off period following a renewal

Proportionate refunds mean businesses can still be compensated for any services or digital content already provided within that period.

Are there any exceptions?

Yes – certain memberships, including those linked to charitable, cultural, and heritage organisations, will be excluded from the new rules.

What should businesses be thinking about now?

While the changes are not expected until 2027, businesses that rely on subscription-based revenue models should keep a close eye on how these regulations develop.

Processes around sign-up, communication, renewals, and cancellations may all need to be reviewed to ensure compliance.