Ministers are set to introduce new regulations aimed at cracking down on expensive subscription traps, making it much simpler for consumers to cancel them.
The new measures will require companies to notify customers before the end of a free or discounted trial period and 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 will streamline the process of ending unwanted subscriptions, offering online cancellation options to avoid lengthy customer service wait times.
These regulations are scheduled to take effect in Spring 2027 and are anticipated to collectively save consumers an estimated £400 million, translating to £14 per month per unwanted subscription.
According to government data, there are approximately 155 million active subscriptions in the UK, with nearly 10 million considered unwanted. Around 1.3 million customers are caught off guard by unexpected auto-renewals.
Richard Walker, an advocate for cost of living issues and the CEO of Iceland, commented, “In times of financial strain, these new guidelines will provide consumers with the transparency and control they need. By preventing companies from silently shifting individuals onto costly contracts and simplifying cancellations, households can better manage their budgets and retain more of their hard-earned money.”
Kate Dearden, the Minister for Consumer Protection, expressed, “Discovering funds disappearing from your account due to a forgotten subscription can be incredibly frustrating. Strengthening subscription laws will be a relief for those grappling with escalating expenses, empowering consumers to oversee their finances effectively and facilitating easier cancellations.”
Sue Davies, Head of Consumer Rights Policy at Which?, stated, “Subscription traps can have a significant financial impact, particularly amid the current cost-of-living challenges. The reinforcement of subscription regulations will be a positive development for those facing financial pressures. These new guidelines will empower consumers with enhanced transparency and safeguards.”
