New rules on subscription contracts expected to come into force

If traders have agreements with consumers that require repeat payments for an indefinite or fixed period, or after having a trial/discounted period, the auto-renewal price is at a higher rate after this period, these will be classed as subscription contracts.

From April 2026, before traders may enter into subscription contracts with consumers for the supply of goods, services or digital content, they are required to:

• Give the consumer the ‘key pre-contract information’ all together and in writing; and
• Give, or make available, to the consumer ‘full pre-contract information’ all together and in writing.

Traders must also change the way in which they need to deliver reminder notices to consumers in respect of auto-renewals, and the ways in which consumers may cancel the agreement.