Ministers are set to introduce new regulations to combat expensive subscription traps, making it easier for consumers to cancel them. The upcoming measures will require companies to notify customers before the end of free or discounted trial periods, as well as before the automatic renewal of 12-month contracts. Additionally, a 14-day cooling-off period will be implemented.
The Department for Business and Trade stated that these rules aim to simplify the process of ending unwanted subscriptions, allowing users to cancel online with just a click, avoiding lengthy customer service wait times. The regulations are scheduled to take effect in Spring 2027 and are projected to collectively save consumers around £400 million, equating to £14 monthly per unwanted subscription.
The government revealed that there are approximately 155 million active subscriptions in the UK, with nearly 10 million considered unwanted. Among these, about 1.3 million customers face unexpected auto-renewals.
Richard Walker, a proponent of cost-of-living issues and the CEO of Iceland, commended the new regulations, emphasizing that they will provide consumers with the clarity and control they deserve. Minister for Consumer Protection Kate Dearden expressed the importance of empowering consumers to manage their finances by preventing unnoticed subscription charges.
Sue Davies, the Head of Consumer Rights Policy at Which?, echoed these sentiments, highlighting the significance of the strengthened subscription laws in offering transparency and safeguarding consumers’ interests amidst financial challenges.
