Guides

CMA penalties for breaking the UK subscription rules

Updated Invalid Date. Based on the Digital Markets, Competition and Consumers Act 2024 and the draft 2026 Regulations and guidance. Not legal advice.

Fines

Since April 2025 the Competition and Markets Authority can enforce consumer law directly. For a consumer protection infringement it can impose a penalty of up to £300,000 or 10% of global turnover, whichever is higher (draft guidance §10.2). Lower caps apply to breaches of undertakings and investigation requirements.

Trading Standards and sector regulators can also take cases to court. Penalties are a maximum, not a tariff.

Customer claims

Separately from regulators, customers get private rights. If you miss certain duties (key information, reminders, a reasonable reminder window, straightforward cancellation), the customer can cancel and stop owing payments from the relevant renewal, for up to 12 months (DMCCA ss.262–263, Act; draft regs 23–27, Regulations). Contract terms that try to exclude these rights have no effect (s.273).

Burden of proof

If there is a dispute about whether you gave information or a notice, you must prove it (s.272(6)). An email counts as given when sent unless non-delivery was within your control (s.272(2)–(3)). This is why a send log with timestamps matters.

Early enforcement

The drafts include no grace period. Law firms reporting on the CMA’s position say its early focus will be on helping businesses comply, that it will act proportionately and consider genuine efforts to comply, but that enforcement is not deferred.

Criminal offence

Only for off-premises contracts: failing to give initial cooling-off information is an offence (s.268). This does not usually affect online SaaS sign-ups.