Consumer law | UK Regulatory Outlook October 2026

Subscription contracts: government issues guidance and CMA signals its compliance approach

The Department for Business, Innovation, Science and Trade has published guidance on the subscription contracts regime under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), and the government has laid the draft secondary legislation, the Consumer Subscription Contracts (Cancellation and Information) Regulations 2026, before Parliament. The guidance is currently in draft; the final version will be published once the regulations are made following their passage through Parliament.

Building on the government's response to the consultation on implementing the regime, the guidance aims to clarify certain issues relating to the operation of the new regime. It provides further detail on the traders' duties to provide key and full pre-contractual information, to give reminder, cooling-off and end-of-contract notices, and to enable consumers to exit a subscription easily (including via an online exit route).

The regime is due to come into force on 1 January 2027. Ahead of the date, the Competition and Markets Authority's (CMA) executive director for consumer protection, Emma Cochrane, has commented on the regulator's approach to enforcement. In the early months of the regime, she said the CMA will focus on supporting businesses in complying with the new rules. This does not mean that enforcement is being delayed, however, any conduct during this period may still be taken into account in any enforcement action.

Ms Cochrane said the CMA will use its powers proportionately, in line with its broader approach to consumer protection, focusing enforcement on more egregious conduct, particularly in areas where businesses should already be clear about their obligations under existing law. The CMA intends to take into account genuine efforts to comply with the new rules when deciding whether to intervene, but its expectation is that businesses should bring themselves into compliance "as quickly as possible."

CMA fines three firms for misleading sales tactics

The CMA has used its direct enforcement powers under the DMCCA to fine three businesses for misleading sales tactics.

Wayfair has been fined for false time-limited offers. The CMA found that products were advertised on the company's website through "Daily Deals" and 24-hour "Flash Deals", alongside messages such as "Here Today, Gone Tomorrow" and countdown timers, yet many products remained available at the same price or lower after the stated deadline had passed.

Appliances Direct's fine relates to time-limited offers and pre-ticked checkboxes. The company was also ordered to pay around £432,000 in refunds to customers affected by automatic opt-ins. Appliances Direct used countdown banners on certain product pages claiming that discounts were available for a limited time, but the CMA found that the same discount codes appeared repeatedly over many days. Customers were also automatically opted into one or both of the following services: "Remove & Recycle Your Old Appliance" and "Installation on Delivery service".

Gold's Gym has been fined for failing to display the total price upfront, and was ordered to refund joining fees to affected consumers. The CMA found that the company did not include the joining fee in the total price shown to consumers for their annual and direct debit memberships, or displayed the total price in a manner that was unclear and unlikely to be seen.

As in previous cases, the businesses received a 40% reduction in their fines for engaging constructively with the CMA.

Ms Cochrane reiterated that the CMA will continue to focus on drip pricing and misleading time-limited offers.

Ryanair challenges CMA information notices as court sets November hearing

The CMA has published an update on its investigation into Ryanair's compliance with consumer protection law, which was launched in June. The CMA is examining Ryanair's use of a potentially unfair contract term requiring consumers travelling with a child to pay a mandatory fee to sit next to that child, as well as whether that fee was included in the total price displayed to consumers (drip pricing).

According to the CMA's update, on 5 August, Ryanair issued proceedings in the Administrative Court seeking permission to judicially review the legality of the regulator's information notices. On 6 August, Ryanair applied to the Administrative Court for interim relief from its obligation to comply with certain parts of the information notices, and to prevent the CMA from taking enforcement action (such as imposing fines) for non-compliance while the judicial review proceedings were ongoing. The Administrative Court refused the application shortly afterwards. The Court has listed a hearing for 24 to 26 November, at which it will decide whether to grant Ryanair permission to proceed with its judicial review claim and, if permission is granted, determine the substantive judicial review claim.

Separately, Ryanair also submitted a complaint to a CMA procedural complaints adjudicator (PCA) challenging the CMA's refusal to pause the deadline for compliance with its information notices. In September, the PCA published a decision concluding that Ryanair's complaint fell outside its remit.