If you operate a gym or leisure centre (whether as a private business or as part of a local authority or public body) new legal requirements for subscription contracts will apply to you from 1 January 2027. This article sets out what is changing, what you need to do, and the consequences of getting it wrong.

What do the new DMCC subscription rules mean for gyms?

The Digital Markets, Competition and Consumers Act 2024 (DMCC) introduces a new subscription contracts regime as the government aims to crack down on 'subscription traps'. 

This new regime is coming into force on 1 January 2027. Gyms and leisure centres (including those fully or partly operated by local authorities or other public bodies) need to act now to make changes to their customer journeys and processes to ensure compliance.

Non-compliance carries significant risk. The Competition & Markets Authority (CMA) has powers to take direct enforcement action against operators that breach the laws, and can impose fines of up to 10% of global turnover or £300,000, whichever is the higher.

Given the lead time required to redesign customer journeys and update systems and processes, we would strongly encourage local authorities and other public bodies which operate gyms and leisure centres to begin their compliance reviews as soon as possible.

What changes do gyms and leisure centres need to make?

The DMCC regime targets subscription arrangements for goods, services or digital content, typically involving auto-renewal, including contracts with a free or discounted introductory period that converts to a higher price unless the consumer cancels.

More specifically, under the new rules, gym and leisure centre operators will be required to make changes to their subscription contracts management including the following:

• Providing pre-contract information to customers immediately before sign-up, setting out the prescribed details of the subscription contract. There are specific requirements for how and when the prescribed information must be presented. A link to terms and conditions on the sign up page will no longer be sufficient for compliance.
• Sending a reminder notice to customers before the end of any initial discounted period, informing them of the upcoming price increase and their right to cancel.
• Sending regular reminder notices throughout the term of the subscription contract, reminding customers of their right to cancel.
• Issuing additional cooling-off notices for certain types of subscription contracts.
• Making changes to processes to enable customers to exit subscription contracts as easily as they can enter them.
• Sending end-of-contract notices in specified circumstances.

The Department for Business, Innovation, Science and Trade has recently published draft guidance on the new rules. Where a local authority or other public body enters into a subscription contract with an individual consumer (for example, offering a gym membership that auto-renews), it will be acting as a 'trader' for the purposes of the DMCC. All of the obligations that fall on traders under the subscription contracts regime will therefore apply to it.

We are advising a number of clients on compliance with the new rules and would be happy to discuss how we can assist. Please contact your usual Browne Jacobson contact or Emma Roake.