Digital Markets, Competition and Consumers Act 2024: subscription contracts (Part 4, Chapter 2) and CMA direct consumer enforcement (DMCC Act)

What it requires

Chapter 2 of Part 4 covers subscription contracts: trader-to-consumer contracts for goods, services or digital content that provide for an automatically recurring or continuing supply with automatic payment, or for a free or reduced-rate period followed by automatic liability at a higher rate (section 254). Before the contract, the trader must give key pre-contract information all together, separately from other information and, online, without the consumer having to take extra steps to read it (section 256). Reminder notices are due for the renewal payment closing each six-month period of a rolling contract and for the first renewal payment after a free or discounted period (section 258), in writing on a durable medium (regulation 34 of the draft regulations). A contract entered into online must be capable of being ended online, in a straightforward way (section 260). Consumers may cancel within 14 days of entering the contract and within 14 days of a relevant renewal, which includes the first renewal payment after a free or discounted period (sections 264 and 265); for contracts for digital content only, the draft regulations let the initial right be given up by express consent and acknowledgement before supply begins (regulation 7). Until the chapter applies, the Consumer Contracts Regulations 2013 govern pre-contract information and cancellation. Separately, Part 3 lets the CMA decide infringements itself and impose penalties of up to £300,000 or 10% of turnover, whichever is higher (section 182(6)). Under section 230, an invitation to purchase that leaves out the total price, which includes charges the consumer will necessarily incur, omits material information, and Schedule 20 treats as unfair in all circumstances false limited-time offers (paragraph 7) and direct appeals to children in advertising (paragraph 30).

Why it bears on this field

The auto-renewing weekly and monthly passes sold in vertical-drama apps are subscription contracts under section 254, including introductory offers in which the first week is free or discounted before the full price applies. The draft guidance uses a free first week of a weekly rolling contract as an example of a concessionary period that requires a reminder notice before the first paid renewal, and states that pop-up or push notifications that cannot be retrieved do not meet the durable-medium requirement. Section 254 turns on automatic recurring supply or a concessionary period, so one-off coin bundle purchases fall outside the subscription chapter; they remain subject to the total-price and unfair-practice rules the CMA already enforces. For subscriptions bought through an app store, the draft guidance places the duties on the trader with whom the consumer contracts. Two investigations opened under the CMA's direct enforcement powers concern subscriptions in other sectors: Adobe's early termination fee, opened on 19 March 2026, and Microsoft 365 renewals, announced on 29 July 2026, both under existing law. The CMA has said it will focus enforcement of the new rules on more egregious conduct, while warning that conduct in the early months may still be considered in enforcement action.

Open questions

• Which party is the trader bound by the subscription duties when a pass is bought through Apple's or Google's in-app purchase system? The draft guidance places the duties on the trader the consumer contracts with, without naming that party in the app-store case.
• Is a subscription to stream episodes a contract for digital content only, which allows the initial cooling-off right to be given up under regulation 7, or a contract for a service? The draft guidance says it is for traders to consider whether their products fall within the section 330 definition.
• Do reminder notices delivered inside an app meet the durable-medium requirement where the consumer can retrieve them later?
• Will Parliament approve the draft regulations, and will section 254 and the rest of Chapter 2 be commenced, in time for contracts entered into from 1 January 2027?

Timeline

• 2024-05-24The Digital Markets, Competition and Consumers Act 2024 receives Royal Assent. Source (opens in a new tab)
• 2025-04-06Part 3 (enforcement of consumer protection law) and Part 4, Chapter 1 (unfair trading) come into force, giving the CMA direct enforcement powers (SI 2025/272). Source (opens in a new tab)
• 2026-03-19The CMA opens an investigation into Adobe's early termination fee on its 'annual billed monthly' plans, under existing unfair-terms and misleading-omission law. Source (opens in a new tab)
• 2026-04-02The Department for Business and Trade sets out its implementing decisions for the subscription rules, then expected to come into force in spring 2027. Source (opens in a new tab)
• 2026-04-15The CMA fines the AA £4.2m and orders more than £760,000 in refunds for leaving a mandatory booking fee out of the upfront price, its first financial penalty for a breach of consumer law under its new enforcement powers. Source (opens in a new tab)
• 2026-07-29The CMA announces an investigation into Microsoft's communications to subscribers before Microsoft 365 Personal and Family plans renewed at a higher price. Source (opens in a new tab)
• 2026-08-09The Prime Minister announces that the subscription rules will come into force in January 2027. Source (opens in a new tab)
• 2026-10-14The CMA fines Wayfair, Appliances Direct and Gold's Gym a combined £6m, including for false time-limited offers and for leaving a mandatory joining fee out of the total price. Source (opens in a new tab)
• 2026-10-19The government publishes draft guidance on the subscription rules alongside the laying of the draft Consumer Subscription Contracts (Cancellation and Information) Regulations 2026. Source (opens in a new tab)
• 2027-01-01Scheduled date for the draft regulations to come into force, subject to parliamentary approval. Source (opens in a new tab)