Do I have to let customers cancel online?
The Act says that where a subscription contract is entered into online, a trader's exit arrangements must let the consumer bring the contract to an end online. The draft guidance adds that the exit route does not have to match the sign-up route, but it must be straightforward.
The government has announced the rules will come into force in January 2027; the exact date will be set in regulations. Parts of this guide rest on draft regulations or draft guidance, which are subject to Parliament's approval and may change.
Last checked against official sources: . This page is general information, not legal advice.
What the official sources say
The general exit duty
The Act requires every trader to make exit arrangements for a consumer's right to bring a subscription contract to an end. Those arrangements must be straightforward and must not need any steps beyond those reasonably necessary.
A trader must make arrangements to enable a consumer to exercise a right to bring a subscription contract to an end— in a way which is straightforward, and without having to take any steps which are not reasonably necessary for bringing the contract to an end.
Source: DMCCA 2024 Part 4 Chapter 2 (subscription contracts) - legislation text
Online contracts need an online exit
For a contract entered into online, the Act says the arrangements must let the consumer end the contract online. The instructions must also be shown online where a consumer trying to leave is likely to find them.
In relation to a subscription contract entered into online, arrangements under subsection (1) must— enable a consumer to bring the contract to an end online, and ensure that instructions for doing so are displayed online in a place or places that a consumer seeking to end the contract is likely to find them.
Source: DMCCA 2024 Part 4 Chapter 2 (subscription contracts) - legislation text
What the guidance says the aim is
The draft guidance describes the policy intention as exiting being as easy as signing up. It says the rules are more likely to be met if a consumer can exit quickly and does not have to contact the trader more than once.
The policy intention of the legislation is that exiting should be as easy as signing up. Therefore the requirements are more likely to be met if the trader’s arrangements allow the consumer to exit within a short period of time and the consumer does not have to contact the trader more than once to exit.
Source: DBT guidance on the subscription contracts rules - full text (draft, subject to Parliament)
Examples of online routes
The draft guidance gives examples of online routes, such as a clearly labelled button or a simple webform. It also says it does not consider an email address alone to meet the test for a straightforward online exit route.
We do not consider that offering an email address meets the criteria for a straightforward online exit route.
Source: DBT guidance on the subscription contracts rules - full text (draft, subject to Parliament)
Common questions
Does the online exit duty apply to every subscription?
The Act's online exit duty applies to a subscription contract entered into online. The general duty to make straightforward exit arrangements applies to subscription contracts more widely.
Is an email address enough as the online exit route?
The draft guidance says it does not consider that offering an email address meets the criteria for a straightforward online exit route.
Check where you stand
The free readiness check takes ten questions about your sign-up, renewal and cancellation journey and gives you a score and the areas to look at, with no email needed to see it.
For a checklist that quotes the Act and flags items to re-check when the rules change, see the paid plan.
Related guides
General information, not legal advice. Every quotation above is copied from the official text named beneath it; follow the link to read it in full.