Subscription lure crackdown launched as ministers introduce new guidelines
The Department for Business and Trade said measures will include firms being forced to remind customers before free or discounted trial period ends and a regular payment begins
Rules to crackdown on costly subscription trapswill come into force from Spring 2027 (Image: fizkes via Getty Images)
Ministers are launching a crackdown on costly subscription traps with new rules to make them far easier to cancel.
Measures will include firms being forced to remind customers before free or discounted trial period ends and a regular payment begins. Mandatory reminders before renewals of 12-month contracts will also be ushered in alongside a new 14-day cooling off period.
The Department for Business and Trade said the rules will make it simpler and far less painful to escape unwanted subscriptions. This will include online exits to cancel subscriptions at the click of a button – rather than endure long customer service phone queues.
The rules will come into force from Spring 2027 and help save consumers an estimated £400 million in total – or £14 each month per unwanted subscription.
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The government said there are estimated 155million active subscriptions across the UK with nearly 10million of them believed to be unwanted. Of those customers, around 1.3million are hit by unexpected auto-renewals.
Cost of living champion and Iceland boss Richard Walker said: “At a time when every pound matters, these new rules will give consumers the clarity and control they deserve.
“By stopping companies from quietly rolling people onto costly contracts and making cancellations far simpler, households can stay on top of their budgets and keep more of their money where it belongs: in their own pockets.
Minister for Consumer Protection Kate Dearden, said: “There’s nothing more frustrating than seeing money you’ve worked hard for, disappear from your account for a subscription you’ve forgotten you had.
“The strengthening of subscription laws will be welcome news for those struggling with rising costs. These new rules will put consumers back in control of their money – making subscriptions clearer, fairer and far easier to cancel.”
Sue Davies, Which? Head of Consumer Rights Policy, added: “Subscription traps can be costly and wreak havoc on finances that are already under strain from the cost-of-living crisis. The strengthening of subscription laws will be welcome news for those struggling with rising costs.
“These new rules will help put consumers in the driving seat with proper transparency and protection.”
