Commercially Connected shorts - 29 October 2026

This week we look at:

• Consumer: two months to go - is your business ready for the UK’s new subscription contracts regime?
• ESG: Green claims under scrutiny – what businesses should know and do now
• AI: human judgement remains critical as tech transforms M&A
• UK Autumn Budget: impact update for businesses

Two months to go: is your business ready for the UK’s new subscription contracts regime?

On 19 October 2026 the Government published the draft Consumer Subscription (Cancellation and Information) Regulations 2026 together with accompanying guidance (Guidance). The Regulations will bring the new subscription contracts regime under the Digital Markets, Competition and Consumers Act 2024 (DMCC) into force on 1 January 2027. They remain subject to Parliamentary approval, but no further changes are expected.

The new regime applies to trader-consumer subscription contracts entered into from 1 January 2027. Earlier contracts are outside scope, although the Guidance FAQs recommend equivalent protection where contracts automatically renew for a new term. Exclusions from scope include financial products, utilities, medical prescriptions and products, telecommunications, accommodation and childcare contracts. However, the regime may still apply to bundles combining excluded products with other goods, services or digital content. The DMCC applies to subscription contracts with UK consumers and may also apply to UK traders selling outside the UK.

Key new duties for traders include:

• Pre-contract information: Key information, including price, payment frequency, renewal, trials and cancellation, must be provided prominently and separately before the consumer commits

• Reminder notices: Generally required at six or 12-month intervals

• Cooling-off rights: A 14-day period applies on entry, with further periods after a free or discounted trial ends and on renewal of contracts with a term of 12 months or more. Separate cooling-off notices are required

• Cancellation: Consumers must be able to end the contract simply, cost-effectively and promptly, in a single communication without unnecessary steps

The Regulations and Guidance clarify several aspects of the new subscription contract regime, including:

• exemptions for cultural and heritage charitable memberships and micro-grocery businesses

• cooling-off and refund rules for perishable, bespoke and hired goods

• cancellation and refund rules for digital content and mixed contracts involving goods, services and digital content

As with other DMCC consumer law changes, compliance is critical given the CMA’s power to impose fines of up to £300,000 or 10% of global turnover, whichever is higher. Failure to provide required information about initial cooling-off rights is also a criminal offence punishable by a fine.

Although the Regulations remain subject to Parliamentary approval, businesses should prepare now by:

• identifying consumer subscription contracts, including renewal frequency and whether the new rules or an exemption apply

• understanding the applicable requirements under the DMCC, Regulations and Guidance

• engaging relevant teams to identify and implement necessary changes to webpages, checkout processes and consumer communications

• assessing operational changes, including processes for reminder notices

• reviewing consumer terms for compliance with pre-contract information and cooling-off requirements

• ensuring consumer-facing teams understand consumers’ new rights and communicate them accurately

With thanks to Matthew Gough, Eve England and Zoe Haden

Green claims under scrutiny – what businesses should know and do

The Empowering Consumers for the Green Transition (ECGT) Directive has applied since 27 September 2026, with no transition period. It tightens the rules on environmental claims and sustainability labels, adds new prohibited practices and strengthens enforcement. Generic claims such as "green" or "net-zero", visual cues and offset-based claims are all under scrutiny.

Our briefing and compliance guide, now updated to reflect recent developments including the European Commission's FAQs, set out the practical steps: mapping claims, prioritising higher-risk ones and aligning product data, sustainability reporting and marketing.

The Implementation Tracker follows developments across Member States. This is relevant to any business making environmental claims to EU consumers, from packaging and advertising to websites and investor materials repurposed for consumer audiences.

AI and M&A

What does the future of dealmaking look like as AI becomes increasingly central to M&A?

At our 2026 Global M&A Conference at Glaziers Hall, London, the global deals community came together to explore how technology is changing the way transactions are identified, assessed and executed, and what that means for businesses and M&A professionals.

From faster analysis and greater complexity to the increasing importance of human judgement, our latest conference summary captures some of the key perspectives and takeaways from the day.

Read the full conference summary: Human judgement remains critical as tech transforms M&A: key takeaways from Eversheds Sutherland’s 2026 Global M&A Conference

UK Autumn Budget: impact update for businesses

On 28 October 2026 the Chancellor announced the following measures as part of the 2026 Autumn Budget:

• VAT online marketplace liability rules – online marketplaces and sellers take note! From October 2027, online marketplaces will become responsible for collecting VAT on qualifying sales by UK businesses where goods are located in the UK. The rules cover UK VAT-registered sellers and other UK businesses with annual sales of at least £90,000 per platform, but exclude personal sales, second-hand goods and B2B transactions. For more on VAT see our Tax Team’s LinkedIn post

• mandatory e-invoicing – the Government has published a Roadmap for implementation. From 1 April 2029, VAT-registered businesses will generally need to issue and receive VAT invoices electronically, with limited exemptions. The UK will use Peppol as its core interoperability framework, with detailed requirements, standards and guidance due between October 2027 and April 2028

• simplified administration for drinks container deposit return scheme

• UK Carbon Border Adjustment Mechanism likely to be expanded to include refinery products

• increase in plastic packaging tax (in line with CPI) where plastic packaging has less than 30% recycled content

• the Data Centre Covenant sets expectations for responsible UK data centre development. Strategic projects must meet enhanced requirements covering energy costs and grid resilience, local community investment, environmental performance, jobs and skills, and security. Measures include Local Benefit Plans, annual energy and water reporting, a target Power Usage Effectiveness of 1.3 or better, and enhanced cyber resilience. In return, qualifying projects may benefit from faster planning and grid connections. For more see our Data Centre team’s LinkedIn post

• a new National Procurement Policy Statement expected in March 2027, and a new definition of “UK supplier” for public procurement, due in January 2027

• investment in GovAI to provide government departments with the latest AI tools and capabilities, and a review of AI use in the health sector

• investment in AI security and resilience, which will see initiatives such as the establishment of a National Exposure and Real Time Vulnerability (NERV) Centre and an agentic national Cyber Shield defence capability. Expect a consultation in 2027 on tackling insecure technology at source (building on the product liability review)

See also Autumn Budget 2026: A summary - House of Commons Library