Consumers can cancel a fixed term contract (for example, gym, cellphone, subscription contracts) at the end of the term. The supplier must notify them between 40 to 80 days before the term ends, of the date of termination and of any changes that would apply if they renewed the contract. The onus is then on the consumer to tell the supplier to terminate the agreement on the expiry date, or agree to renew the contract on the new terms, failing which the contract will continue on a month on month basis on the new terms.

So, it is important that consumers keep a record of when the contract ends, so that they are in control of what happens at the end of the term.

Consumers can also cancel a contract before the term has expired by giving 20 business days notice, but will be liable for “a reasonable cancellation penalty”.