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The UK’s New One-Click Cancellation Law Explained: What’s Required in 2027

Maarten Doornenbal

Nov 4, 2026

On 1 January 2027, the UK’s “one-click cancellation” measure comes into effect. It sets new rules for consumer subscription businesses to follow regarding sign-up information, renewal reminders, and the cancellation process.

Here’s what it says, who it covers, and the rules you must follow.

DMCCA: The UK's new subscription law

The measure comes from the Digital Markets, Competition and Consumers Act 2024 — also known as the DMCC Act — setting new requirements for how consumer subscriptions are sold, renewed and cancelled.

The rules are enforceable by the Competition and Markets Authority (CMA), with fines of up to £300,000 or 10% of global turnover, whichever is higher.

Why is the UK government introducing it?

The government's aim is to end "subscription traps". It estimates that 9.7 million of the UK's 155 million active subscriptions are unwanted, costing consumers £1.6 billion a year. It expects the new rules to save consumers around £400 million a year.

When does it come into effect?

The draft regulations were laid before Parliament on 19 October 2026. Subject to parliamentary approval, the new subscription rules are due to come into force on 1 January 2027.

Who the new rules apply to

The rules apply to any business that sells subscriptions to consumers, where the subscription renews automatically, unless a specific exclusion applies.

This includes consumer subscriptions like:

Gym and fitness memberships
Subscription boxes
Replenishment deliveries
News and magazine subscriptions
Streaming and apps

Even if you are not a subscription-first business, offerings like a recurring delivery or servicing plan attached to a one-off product can also count, if it meets the definition of a subscription contract.

Important: Free trials and discounted introductory periods that automatically transition into paid subscriptions are covered.

Which sectors are excluded?

Certain sectors are excluded completely, while some exclusions are limited to specific products or services within a sector. These include utilities, financial services, telecoms, childcare, gambling, and memberships to cultural or heritage charities.

However, the exemptions can vary depending on the type of contract and service involved. Check the UK government's guidance for the comprehensive list of exclusions.

Do the rules apply to existing subscribers?

The rules only apply to contracts entered into on or after 1 January 2027. Existing subscribers stay on their current terms, even when they renew.

However, it recommends giving all subscribers the same protections as best practice.

Does it matter how subscribers sign up?

No. The rules apply regardless of how the subscriber signs up — whether online, by phone or in person.

Important: Businesses based outside the UK that sell to UK consumers are included.

What the DMCC Act requires from subscription businesses

You must be clear at sign-up

Businesses must give subscribers important information before they commit to a subscription.

This includes the price, how often they'll be charged, when the subscription renews, when they'll receive reminders and how to cancel.

The key information must appear together, close to the point where the subscriber commits. Online, it must be visible during checkout, without requiring customers to follow a link to find it.

Sign-up method	What businesses must do
Online	Display the key information together on screen, before the customer commits.
By phone	Clearly explain the key information during the call.
In person	Provide the key information in writing, on paper or by email.

Businesses must also make sure the final sign-up button clearly explains that the customer is agreeing to pay.

You must send renewal reminders

Businesses must send written reminders at three key points during a subscription:

Before a free trial or introductory offer ends and renews at full price
Before a subscription automatically renews onto a new long-term contract
Roughly every six months for rolling subscriptions, such as weekly or monthly plans.

1. When a free trial or introductory offer ends

If a customer signs up for a free trial or reduced-price introductory period that automatically moves to a higher price, you must remind them before the first higher payment is due.

2. When a contract renews for 12 months or longer

If a subscription automatically renews onto a new contract lasting 12 months or longer, you need to send two reminders before the renewal payment.

3. When there’s rolling weekly, monthly and other shorter-term subscriptions

For subscriptions that renew regularly, such as monthly or weekly plans, customers should receive a reminder at least twice a year, explaining that their subscription is continuing and how they can cancel. This is roughly every six months.

Reminders must be sent in writing through a format the subscriber can keep, such as email, SMS or post. Push notifications and in-app messages alone aren't sufficient.

The payment details must also be the most prominent information in the message.

You must make it easy to cancel

Subscribers must be able to cancel at any time, in a straightforward way, without unnecessary steps.

The guidance says exit should be as easy as signing up, ideally done quickly and without contacting you more than once. For instance, if a subscriber signed up online, they must be able to cancel online.

A clearly labelled cancel button or a simple web form meets this. But an email address or a "call us to cancel" process does not.

Important: Retention offers are still allowed

Businesses can offer a pause, downgrade or discount, and can ask why the subscriber is leaving. However, offers must not slow down the process or discourage the subscriber from completing it.

Feedback must be optional. A compulsory "why are you leaving?" form before exit is unlikely to comply.

You must allow two 14-day cooling-off periods

The new rules introduce two separate 14-day cooling-off periods for subscribers to cancel without penalty. During this period, subscribers can cancel without penalty and receive a full or proportionate refund, depending on what has already been supplied.

1. When someone first signs up

Subscribers have 14 days from entering into a subscription contract to cancel without giving a reason.
For subscriptions involving physical products, the 14-day period starts when the customer receives the first delivery.

2. When a free trial ends or a long-term contract renews

A free trial or introductory offer ends and the subscriber becomes liable for their first higher or full-price payment.
A subscription automatically renews onto a new contract lasting 12 months or longer.

If you don't give the required cooling-off information, the period keeps running until you fix it for up to 12 months.

You must confirm every cancellation

Businesses must confirm every cancellation in writing, including the date the subscription ends.

The deadlines are:

Online cancellation: within 24 hours of notification.
Other cancellation methods: within three working days, beginning the day after notification

The required cancellation information must also be more prominent than any accompanying marketing or promotional offers.

What to do before 1 January 2027

Separate existing subscribers from new ones: Make sure your systems can tell which contracts started on or after 1 January, and flag any change that might put an existing subscriber on a new contract.
Walk through your signup flow: Check ads, landing pages, checkout, apps, phone scripts and in-club forms, so the key terms appear together before the subscriber commits.
Map your renewal reminders: List every plan, trial and intro offer, work out when each reminder is due, and decide the window you'll state at sign-up.
Rebuild the exit plan: Test cancellation end to end on web, app, phone and in person. Make sure save offers and feedback questions are optional and quick to pass.
Act before the reminder lands: Every renewal reminder is now a prompt to leave, and subscribers who’ve stopped engaging are the most likely to act on it.

Tools like Churned.io use AI to spot those subscribers weeks before a reminder or renewal, then automatically trigger the right next step for each one in the tools you already use.