Ministers are set to crack down on expensive subscription traps by introducing new regulations that will simplify the cancellation process.
Under the new rules, companies will be required to notify customers before the end of a free or discounted trial period and before the automatic renewal of 12-month contracts. Additionally, a 14-day cooling off period will be implemented to allow customers to cancel subscriptions without hassle.
The Department for Business and Trade stated that these measures will streamline the process of canceling unwanted subscriptions, including providing online cancellation options to avoid long waits on customer service phone lines.
The regulations are scheduled to take effect in Spring 2027 and are expected to save consumers a total of £400 million, equating to around £14 per month per unwanted subscription.
According to government data, there are approximately 155 million active subscriptions in the UK, with nearly 10 million considered unwanted. Of those, about 1.3 million customers are caught off guard by unexpected auto-renewals.
Richard Walker, a prominent figure in the cost of living debate and CEO of Iceland, praised the new rules, emphasizing that they will offer consumers the clarity and control they deserve in managing their finances.
Consumer Protection Minister Kate Dearden emphasized the importance of empowering consumers to have control over their subscriptions, ensuring greater transparency and ease of cancellation.
Sue Davies, the Head of Consumer Rights Policy at Which?, echoed the sentiment, highlighting the financial strain that subscription traps can impose and welcoming the enhanced consumer protection laws for providing transparency and safeguarding consumers’ interests.