Part 4: Consumer rights and disputes Introduction Section 254: Meaning of "subscription contract"
This section defines the scope of a "subscription contract". Subsection (1) provides that a subscription contract is a contract between a trader and a consumer for the supply of goods, services or digital content by the trader to the consumer in exchange for payment by the consumer, which contains terms that have the effect set down (in either or both) subsections (2) and (3), and is not an excluded contract, as defined in section 255.
	Subsection (2) provides that a relevant fixed term contract or a contract for an indefinite period will be considered a subscription contract if it has auto-renewing features as well as a right to bring the contract to an end, which mean a consumer must take action to stop the continuation of the contract beyond a mandatory period, or stop the renewal or extension of the existing contract period, rather than it terminating by default.
	Subsection (3) provides that a relevant contract which involves the supply of goods, services or digital content as a free-trial or at reduced cost for a specified period of time, after which the contract continues at full cost (or the trader has an option to impose a charge or an increase to the original rate), will be considered a subscription contract if the consumer must take action to avoid defaulting to contract terms which involve paying the full or a higher price.
	Subsection (4) clarifies that references to a consumer’s right to bring a contract to an end only extend to contractual rights to end the contract which can be exercised by the consumer without incurring a penalty which is more than nominal. In relation to a fixed term contract, this could include an early cancellation right which allows a consumer to exit the contract before the end of the fixed term period.
	Where a contract does not meet the definition of ‘subscription contract’ set out in this Chapter, the Consumer Contract Regulations (Information, Cancellation and Additional Charges) Regulations 2013 will continue to apply unless otherwise excluded by those regulations.