Subscription Trap
A practice where consumers are enrolled into, or fail to realise they will be automatically charged for, an ongoing subscription — now specifically regulated by dedicated pre-contract information, cancellation and cooling-off duties under the Digital Markets, Competition and Consumers Act 2024.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Subscription traps — free trials that silently convert into paid recurring charges, or renewals a consumer did not realise they had agreed to — were long tackled only through the CMA's general consumer protection powers. The Digital Markets, Competition and Consumers Act 2024 now creates a dedicated statutory regime: Chapter 2 of Part 4 'imposes duties on traders in relation to subscription contracts, provides rights for consumers if those duties are breached, and provides rights for consumers to cancel subscription contracts during cooling-off periods.'
The Chapter builds a structured set of protections: sections 254 and 255 define what counts as a 'subscription contract'; sections 256 to 261 impose duties on traders — including pre-contract information requirements and reminders before a renewal charge is taken; sections 262 and 263 give consumers a right to cancel if the trader breaches those duties; and sections 264 to 266 give a further right to cancel during defined cooling-off periods, including a fresh cooling-off period each time the contract renews. Together, these provisions are designed to stop consumers being locked into payments they never consciously agreed to continue.
Related terms
Official sources
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