The relationship between companies and consumers is changing for the better in the UK. For subscription businesses, this shift presents a massive opportunity to build deeper, more meaningful connections with the people they serve — and it’s all thanks to the Digital Markets, Competition and Consumers Act (DMCCA).

The DMCCA, which is coming into effect during 2025 and 2026, is designed to make the market fairer and more transparent for everyone. It puts power back into the hands of consumers, particularly when it comes to recurring payments and subscription contracts.

The new rules introduce key changes that every subscription business needs to know about: offer clearer pre-contract information, require reminder notifications before a contract rolls over, and most importantly, make it much easier for customers to cancel a service they no longer need.

While the word “regulation” can sound intimidating, I encourage you to see this as a positive development. Complying with the DMCCA isn’t just about avoiding a fine — it’s a blueprint for delivering an exceptional customer experience that builds trust and loyalty.

Why it matters to you

In the subscription economy, trust is your most valuable asset. 94% of consumers are more likely to be loyal to a brand that's completely transparent. When customers feel respected, informed, and in control of their spending, they become advocates for your brand. 

The DMCCA is fundamentally about fostering that trust. By embracing transparency, you’re not just complying with the law; you’re building a foundation for long-term, sustainable growth.

The UK’s Competition and Markets Authority (CMA) has been given significant new powers under the act. The CMA can now investigate businesses and impose fines of up to £30,000 or  10% of their global turnover without going through the courts first. This signals a major shift, holding businesses directly accountable for unfair practices.

But look at the upside: these rules level the playing field. They ensure that honest, transparent businesses are no longer at a disadvantage to competitors who might have relied on confusing terms or difficult cancellation processes to retain customers. 

Now, the brands that win will be the ones that genuinely earn their customers’ loyalty.

What you can do to prepare

Getting ready for the DMCCA doesn’t have to be complicated. It comes down to reviewing your current practices and putting your customers’ experience at the heart of every decision. Here are some best practices to guide you.

Enhance your subscription contracts

The new legislation places a strong emphasis on transparency and fairness from the very beginning of the customer relationship:

  • Provide clear pre-contract information: Before a customer clicks “subscribe,” they should understand exactly what they’re signing up for. Be upfront about the total price, billing frequency, contract length, and key terms — no burying details in the small print. We've seen customers take this transparent approach and see double-digit improvements in sign-up conversion.

  • Send timely reminder notifications: Three in four customers find transparency in communication crucial. The DMCCA requires businesses to send reminders before a free trial converts to a paid subscription or a long-term contract automatically renews. This gives customers control over their decisions.

  • Make cancellations easy: The cancellation process should be as straightforward as the sign-up process. If a customer can subscribe online in just a few clicks, they should be able to cancel just as easily. Forcing them to call a support line or navigate a maze of menus is no longer acceptable and creates a poor final impression.

  • Make it easy to resubscribe: While the law requires easy cancellation, you can turn a loss into a future win. Consider adding a one-click resubscribe option. If a customer’s circumstances change, making it effortless to return can win back revenue and shows you value their business, even if they need to take a break.

Address unfair commercial practices

Beyond contracts, the DMCCA also tackles two specific commercial practices that have hurt consumer trust over the years:

  • Avoid fake reviews: Authenticity is non-negotiable. Trust in online reviews has been eroding for years, and the DMCCA takes direct aim at this. The act explicitly bans displaying fake reviews. Businesses now have a duty to ensure the reviews they publish are genuine. 

  • Eliminate drip pricing: “Drip pricing” is the practice of advertising one price at the beginning of a transaction, only to “drip” in additional mandatory fees throughout the checkout process. Full transparency in pricing prevents frustration and builds confidence.

Ultimately, these changes are about putting the customer first. By embracing them, you're not just following the rules — you're building a more honest and sustainable business.

How Recurly can help

At Recurly, we believe that adapting to new regulations shouldn't require extensive engineering work.

Our platform is built for flexibility, allowing you to make simple changes to stay compliant and deliver the experience your customers expect — whether it’s customising your email templates to send automated renewal reminders, updating plan descriptions to ensure pricing is clear, or enabling self-service cancellation options through our customer portal.

But we are more than just a platform; we are your partner. The world of subscriptions is constantly evolving, and our team is committed to helping you navigate these changes.

While meeting the DMCCA's requirements is a crucial step in building trust, our partnership goes beyond simple compliance. We help you turn challenging moments, like cancellations, into valuable opportunities.

With Recurly, you can engage with at-risk customers to understand their reasons for leaving and present tailored offers — like pausing their subscription or switching to a different plan — that might better suit their needs, ultimately strengthening the relationship.

The future is transparent

These regulations are a reflection of a new standard in customer relationships. By embracing these principles of transparency, fairness, and respect, you’re building a stronger, more resilient brand that people trust. And in the long run, that trust is what turns one-time customers into lifelong subscribers.

If you have any questions about how you can prepare for the DMCCA, please don’t hesitate to contact your Customer Success Manager or our sales team. We’re here to help you comply and get ahead of what’s next.