Consumers will be able to cancel and get refunds for unwanted subscriptions more easily in a new crackdown on rogue retailers.
Families are wasting £1.6billion each year on unwanted subscriptions due to unclear terms and conditions and complicated cancellation routes, the Department of Business and Trade (DBT) said. It means they could save £14 per month for each unwanted subscription they were able to leave earlier.
Ministers have announced new plans to stop complicated websites and restrictive call centres ripping people off with “subscription traps”. These are when consumers are misled into signing up for a subscription through a “free trial” or reduced price offer. If the customer doesn’t cancel the trial within a set amount of time, they are often automatically transferred to a costly subscription payment plan.
Subscriptions can be for anything from magazines to beauty boxes to pet treatments. Many have complicated or inconvenient cancellation processes such as phone lines with long waits and restrictive opening hours that can leave consumers feeling trapped. DBT has now launched a consultation on measures to make the refunds and cancellation processes simpler.
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Tom MacInnes, director of policy at Citizens Advice, said: “We’ve been raising the alarm for a long time on subscription traps exploiting consumers. So we’re pleased to see the Government’s new rules taking up our call for people to be able to exit a subscription as easily as they signed up for it. Subscription traps are just one way we’re seeing online sales trick people into parting with their money. We hope the Government continues to crack down on these online sales tactics, which are designed to catch shoppers out.”
Which? director of policy and advocacy Rocio Concha said: “Subscriptions can be a convenient way for consumers to receive products and services, but in recent years many consumers have been trapped in unwanted subscriptions. It’s encouraging to see the Government press ahead with much-needed laws to tackle this, which will hand consumers far greater control over the subscriptions they take out.”
Business Secretary Jonathan Reynolds said: “Everyone hates seeing money leave their account for a subscription they thought they’d cancelled, or a trial that unexpectedly gets extended. Our mission is to put more money back into people’s pockets and improve living standards across this country, tackling subscription traps that rip people’s earnings away is an important part of that.”