Andy Burnham guarantees crackdown on pricey subscription traps and ‘rip-off reductions’
The Prime Minister will bring forward ‘easy to exit’ rules, making it less painful for consumers to cancel subscriptions and avoid automatic renewal at a higher cost
Andy Burnham will bring forward ‘easy to exit’ rules(Image: POOL/AFP via Getty Images)
Andy Burnham has promised everyday fixes on the cost of living including an end to costly subscription traps and rip-off discounts.
The Prime Minister will bring forward “easy to exit” rules, making it less painful for consumers to cancel subscriptions and avoid automatic renewals at a higher cost. The crackdown was previously unveiled under ex-PM Keir Starmer and is set to include mandatory reminders before renewals of 12-month contracts.
The rules had been due to come into force in Spring 2027, but Mr Burnham will now bring forward by several months to January in time for when customers often start new subscriptions. Downing Street has said it will save consumers an estimated £400 million – or £14 each month per unwanted subscription.
No10 also said “pretend prices and deceptive deals will be a thing of the past” under new proposals. They said the Prime Minister plans to ban retailers from making misleading claims to customers about discounts after complaints prices are being artificially hiked to give a false sense of value.
Mr Burnham said: “I know people are sick and tired of rip-off discounts and subscription traps. Westminster has got used to telling people that everyday hassles like this are just part of life.
“I don’t think that’s right, especially when the cost of living continues to weigh heavily on so many people’s lives. I’m determined to pull every single lever we can to provide people with some room to breathe on the cost of living.”
He added: “We’re putting an end to phoney bargains. If something is advertised as half price, it should actually be half price. We’re also making it as easy to leave a subscription as it is to join.
“These are just two of the everyday fixes we’re going to be rolling out – today is just the start. We want to put more money in people’s pockets and give people hope that politics really can work for them and their everyday lives.”
Chief executive of Citizens Advice, Dame Clare Moriarty, said: “For too long consumers have been tricked into paying for products or services they don’t use – or didn’t even want to begin with – costing millions of pounds each year. So we really welcome the government’s move to speed up action on subscription traps and look at banning other tactics firms use to catch consumers out.”
She added: “At Citizens Advice, we’ve sounded the alarm on this for years, because we know subscription traps and sneaky online practices that hit consumers’ pockets hard are a widespread problem. We previously found that over 13 million people (26% of UK adults) accidentally took out a subscription in a year.”
Business Secretary Jonathan Reynolds added: “There’s nothing worse than realising you’ve been fleeced by a dodgy deal, or seen money leaving your account because of a subscription you didn’t want to renew or couldn’t easily cancel. This Government is on the side of families working hard to make ends meet, while making sure the rules are clear for businesses and easy to follow.”
