As of 13 August 2026, AI can only partly write a cancellation policy for your UK business.

This still needs a person who signs their name to it.

Can you do it?

5 minutesto a draft.

1 hourto something you’d act on.

Cost, all in£0

Skill neededchat-fluent

Who has to check ita professional

What the alternative costsA purpose-built tool such as Termly generates and maintains terms and other compliance documents.

If this goes wrong: you publish a term that conflicts with UK consumer rights, refuse a valid cancellation or create a dispute over a refund.

What to actually do

Hand it to a person
The route this page recommends
Someone with a licence or accountable authority has to sign this before it counts.
Use a tool built for this
Second choice

Do it yourself

The distant third

A chat interface, chat-fluent skill, and roughly 1 hour until you can act on the result.

How to actually do it

Open your current price list, booking terms, website checkout flow and customer communications, then gather the business facts requested in the prompt.
Record the cancellation routes, notice periods, deposits, refund amounts, rescheduling options and exceptions exactly as you currently operate them.
Paste the prompt and your facts into an AI tool, then ask it to produce the customer-facing policy and its separate assumptions and legal-check list.
Compare every operational statement in the draft against your price list, booking system, contracts and actual staff process, correcting any mismatch.
Open the relevant current guidance on GOV.UK and mark each legal-check item that applies to your sales method, customer type, service, digital content or event.
Send the draft, your source documents and the AI assumptions to a UK solicitor for review if the policy will govern consumer contracts or carries material refund or dispute risk.
Publish the approved version in the place customers buy from you, and give staff the same version so they do not promise different cancellation terms.

Prompt

Draft a cancellation policy for my UK business using the information below. Write in plain British English and make the policy specific rather than generic. Do not invent facts, legal rights, prices, notice periods or exceptions. If information is missing, list it as an assumption or ask a question instead of filling it in.

Business name: [BUSINESS NAME]
Business type and sector: [BUSINESS TYPE AND SECTOR]
What customers buy: [SERVICES, PRODUCTS OR BOOKINGS]
How customers buy: [WEBSITE, SHOP, PHONE, IN PERSON OR OTHER]
Customer types: [CONSUMERS, BUSINESSES OR BOTH]
When the contract starts: [WHEN THE CUSTOMER BECOMES COMMITTED]
Cancellation process: [HOW CUSTOMERS MUST CANCEL]
Notice period: [NOTICE PERIOD, IF ANY]
Refund rules we intend to use: [REFUND RULES]
Deposits or fees: [DEPOSITS, ADMINISTRATION FEES OR OTHER CHARGES]
Exceptions: [EXCEPTIONS SUCH AS CUSTOM WORK, EVENTS, DIGITAL CONTENT OR SERVICES ALREADY STARTED]
Rescheduling rules: [RESCHEDULING TERMS]
Contact details for cancellation: [EMAIL, FORM OR POSTAL ADDRESS]

Produce:
1. A customer-facing cancellation policy with headings.
2. A short list of facts or decisions I still need to confirm.
3. A separate list of provisions that need checking against current UK consumer law, including distance selling, cooling-off rights, services already started, digital content, deposits, unfair terms and sector-specific rules where relevant.
4. A plain-English explanation of any assumption you made.

Do not present this as legal advice. Do not claim that a term is lawful unless it has been checked against current official guidance or by a UK solicitor. Make the draft easy for a solicitor to review.

Open it prefilled in ChatGPT or Claude, or copy it into Gemini, which takes no prefill link.

What it gets wrong

AI cannot decide which cancellation and refund rules apply to your exact sales process without reliable facts about how and when contracts are formed.
AI cannot take responsibility for an unlawful exclusion of consumer rights or a refusal to make a required refund.
AI cannot reliably resolve grey areas involving deposits, bespoke work, events, digital content or services that have already started.
AI cannot replace a solicitor's review of the final wording where a dispute, regulator complaint or substantial customer liability is a realistic possibility.

What caps this at PARTLY: legal accountability, judgement under ambiguity and verification cost.

How we scored this

Five axes, each scored nought to two by hand: ten means AI carries the task cleanly, and the thresholds that turn a total into YES, PARTLY or NO are published in the methodology. Each axis name links to its definition.

Axis	Score (0–2)
Output	2
Inputs	2
Verification	1
Liability	0
Effort delta	2
Total	7 / 10

The methodology and its thresholds are published in full.

FAQ

Can ChatGPT write a cancellation policy for my business?: Yes, it can produce a useful first draft from your actual booking, payment and refund rules. It cannot confirm that the final wording complies with UK consumer law, so a serious or high-risk policy needs review by a UK solicitor.
What should a UK cancellation policy include?: It should state how customers cancel, the relevant notice period, refund and rescheduling rules, deposits or charges, exceptions, and the contact route. It should also reflect how customers buy from you and any applicable consumer rights.
Can I use an AI-written cancellation policy in the UK?: You can use AI to draft and organise the wording, but you remain responsible for what you publish and enforce. This is not professional advice, and a UK solicitor should check the policy where the legal or financial consequences matter.
Is an AI cancellation policy legally binding?: AI authorship does not make a policy binding or lawful. Its effect depends on how it is incorporated into the contract, whether customers saw and accepted it, whether it matches your practice, and whether its terms comply with applicable UK law.

Nearby answers

All Terms & policies rulings

Assessed by gpt-5.6-luna (gpt-5.6-luna) on 2026-08-13, second-checked by an independent model. Wrong somewhere? Email [email protected] and it gets re-checked.

The newsletter

AI news, new answers and product picks, straight to your inbox.