Ministers are set to crack down on expensive subscription traps by introducing new regulations that will simplify the cancellation process.
The new measures will include requirements for companies to notify customers before the end of any free or discounted trial period, as well as before the renewal of 12-month contracts. Additionally, a 14-day cooling off period will be implemented. These changes aim to make it easier for consumers to opt out of unwanted subscriptions, including providing online cancellation options to avoid lengthy customer service wait times.
Scheduled to take effect in Spring 2027, the rules are projected to collectively save consumers an estimated £400 million, translating to around £14 per month per unwanted subscription. The government highlighted that there are approximately 155 million active subscriptions in the UK, with nearly 10 million deemed unwanted. Among these, approximately 1.3 million customers are caught off guard by auto-renewals.
Richard Walker, a prominent figure in cost of living advocacy and the CEO of Iceland, expressed support for the new regulations, emphasizing that they will offer consumers clarity and control over their finances. Minister for Consumer Protection Kate Dearden echoed this sentiment, stressing the importance of empowering consumers to manage their money effectively and avoid unnecessary expenses.
Sue Davies, the Head of Consumer Rights Policy at Which?, emphasized the financial impact of subscription traps on individuals already struggling with the cost-of-living crisis. She welcomed the strengthened subscription laws, noting that the updated rules will provide consumers with transparency and protection, ultimately putting them in charge of their subscriptions.
