Did you know that UK consumers spend an estimated £1.6 billion each year on unwanted subscriptions?
Subscription services remain a staple of UK consumer habits, with 49% of adults regularly paying for just entertainment platforms like Netflix, Amazon Prime Video and Spotify.
Most of us fall into the trap of 'streamflation' which is subscribing to more platforms than we use. It raises an important question - are these intentional renewals, or simply forgotten trials that are still billing your account?
From Spring 2026, the Digital Markets, Competition and Consumers Act (DMCCA) will clamp down on so-called “subscription traps” and introduce strict new rules on how subscriptions are sold, renewed, and cancelled.
With fines of up to 10% of global turnover, this is not a box-ticking exercise. It is a fundamental shift in how subscriptions must work.
Below, we explain what this means for both businesses and consumers and how to protect your position.
If You Are a Business: What You Must Do Now
The DMCCA puts transparency and fairness at the heart of subscription models. Compliance starts before the customer even clicks “buy”.
1. Get Pre-Contract Information Right
You must clearly display “Key Information” upfront, without hiding it in terms and conditions. This includes:
- Price and billing frequency
- Length of commitment
- Minimum total cost
- How and when customers can cancel
No more burying critical terms behind hyperlinks.
2. Send Mandatory Renewal Reminders
The “set it and forget it” model is over. You must now:
- Send reminders at least every six months for rolling contracts
- Issue specific notices before annual renewals
- Notify customers before free trials or introductory rates end
Miss these, and you risk regulatory action.
3. Respect Enhanced Cooling-Off Rights
Customers will have:
- 14 days from the start of service
- A new 14-day period after major renewals or trials
You must be ready to process refunds, including pro-rata refunds where applicable.
4. Build an “Easy-Exit” System
Cancelling must be as simple as signing up.
- Aim for “two clicks in, two clicks out”
- Remove manipulative “save” journeys
- Keep exit surveys optional
If your cancellation process frustrates users, it may be unlawful.
5. Understand the Enforcement Risk
The Competition and Markets Authority now has strong powers, including:
- Fines up to 10% of global turnover
- Forced mass refunds
- Binding compliance orders
Early audits and legal reviews are essential.
If You Are a Consumer: Know Your Rights
From 2026, subscriptions must work in your favour, not against you.
You have the right to:
1. Clear Information Before You Buy
You must be told upfront:
- Exactly what you will pay
- How long you are committing
- How to cancel
If this information is hidden or unclear, the business may be in breach.
2. Regular Renewal Warnings
You should receive reminders before:
- Long-term renewals
- Trial periods ending
- Price changes
No more “surprise” charges.
3. Cooling-Off Protection
You can change your mind:
- Within 14 days of starting
- After certain renewals or trials
This includes a right to refunds in many cases.
4. Simple Cancellation
If you joined online, you must be able to leave online, quickly and easily.
Long phone queues, hidden buttons, or pressure tactics may be unlawful.
Trapped in a Subscription? Your Remedies
If you believe you are stuck in a subscription trap, take action:
Step 1: Cancel in Writing
Use the company’s online system or email. Keep screenshots and records.
Step 2: Request a Refund
If rules were breached (no reminders, unclear pricing, difficult exit), ask for a refund and refer to the DMCCA.
Step 3: Raise a Formal Complaint
Submit a written complaint to the business and request escalation.
Step 4: Contact Your Bank
You may be able to stop payments and recover funds through chargeback or direct debit guarantees.
Step 5: Report to Regulators
You can complain to Trading Standards or the CMA if practices appear unfair.
Step 6: Get Legal Advice
Where losses are significant, legal action may be appropriate.
Professional advice can help you recover money and stop unlawful practices.
Final Word: Compliance Is an Opportunity
The 2026 DMCCA is not just a regulatory hurdle. It is a chance to build trust, reduce complaints, and improve customer loyalty.
For businesses, transparency now equals competitive advantage.
For consumers, the balance of power is finally shifting.
Legal disclaimer and restricted access
The content provided in this newsletter is for informational purposes only and does not constitute legal advice.
Any person facing legal charges should seek immediate advice from a qualified solicitor or barrister.
Central Chambers Law does not accept liability for any decisions made on the basis of information contained in this article. Access to certain restricted legal templates and case materials requires explicit confirmation that you understand these limitations and accept full responsibility for your use of such materials.
FAQ
Some questions we get, which may help you in this moment
When you receive a Letter of Claim or a formal Claim Form, you are at a critical crossroads in a legal dispute. While they may look similar, they represent two different stages of litigation, and mishandling either can lead to unfavourable financial and legal consequences.
A Letter of Claim, also known as a Letter Before Action, is a formal warning that someone intends to start court proceedings against you. Under the Civil Procedure Rules, parties are expected to exchange enough information to understand each other’s positions and attempt to settle without involving the court.
Ignoring this letter is a high-risk strategy. Even if you believe the claim is meritless, the court can penalise you later by ordering you to pay the other side’s legal costs, because you failed to follow the required Pre-Action Protocols. This stage is actually a vital window of opportunity. It allows for strategic negotiations or Alternative Dispute Resolution (ADR), which can resolve the matter privately and more cost-effectively than litigation.
If you receive a Claim Form, on the other hand, the matter has officially entered the court system. This is more urgent than a preliminary letter. From the moment you are served (which is deemed to occur 2 business days after the documents were posted to your last known address) the countdown begins.
If you do not engage with a claim, the other side can request a default judgment 15 days after you are deemed to have received the Claim Form. Once this judgment is entered, it is a matter of public record that can significantly damage your credit rating for 6 years and allows the other side to take enforcement measures.
There are procedural steps available to protect you in such situations. For instance, filing an acknowledgement of service is a vital holding position and allows you more time to prepare a proper defence. Engaging with a solicitor at this moment is essential to identify potential flaws in the claim that can allow you to have the claim stopped or struck out.
A court judgment (often called a CCJ) is a serious matter that allows a creditor to take aggressive enforcement action, such as sending bailiffs to seize goods or freezing your bank accounts. However, there are solutions to put your mind at ease. The first priority is to determine if the judgment was entered correctly. If you were unaware of the original claim, perhaps due to documents being sent to a previous address, there are procedural mechanisms to apply to have the judgment set aside. This process effectively cancels the judgment and reopens the case, but the court will only grant this if you act quickly after discovering the order.
Immediate legal guidance is essential to ensure your application meets the court's strict requirements.
A judgment is a major indicator of financial risk that stays on your credit report for 6 years. During this time, it can prevent you from obtaining a mortgage, securing a loan, or even getting a mobile phone contract. Many private landlords and letting agents also check these records, meaning a judgment could even stop you from renting a home.
To minimise this damage, paying the debt in full more than 30 days after the order will mark the judgment as satisfied. While the entry remains for the full 6 years, a satisfied status shows future lenders that you have fulfilled your obligations.
Contractual breaches can range from minor failures to fundamental violations that render the entire agreement void. Before initiating a formal claim, the court expects parties to follow certain Pre-Action Protocols, which involve clear correspondence detailing the breach and the resulting loss. This structured approach often provides a solution to the dispute through negotiation or mediation, and helps parties avoid the costs of litigation.
If a claim becomes necessary, the objective is to secure damages that place you in the financial position you would have been had the contract been fulfilled. Depending on the nature of the breach, other remedies may be available, such as specific performance, where the court compels the other party to complete their original obligations, or an injunction to prevent further harm.
Recovering a debt requires a careful strategy to ensure the process remains cost-effective. We begin with formal demands that comply with court standards for debt claims. If the debtor remains unresponsive, obtaining a court judgment is the next step, which then unlocks a variety of enforcement tools to turn that judgment into actual payment.
Depending on the debtor’s assets, the legal solution may involve a Charging Order to secure the debt against their property, an Attachment of Earnings to deduct payments directly from their salary, or a Third-Party Debt Order to recover funds from their bank account. In cases where a debtor is a company, insolvency-based procedures like a Winding-Up Petition can also be considered as a powerful means of prompting payment.
A limitation period is a statutory deadline imposed by the Limitation Act 1980, typically giving you 6 years from the date of a breach or damage to issue a claim. Once this period expires, the claim is time-barred, and the other side will have an absolute defence to block your case, regardless of its merits.
Because these deadlines are non-negotiable, waiting too long can mean losing your right to justice entirely. We recommend a prompt review of any potential claim to ensure you meet all statutory time limits and protect your ability to recover your losses.
