A government crackdown is set to tackle expensive subscription traps by introducing new regulations to simplify the cancellation process.
The measures will require companies to notify customers before the end of any free or discounted trial period, preventing unexpected charges. Additionally, mandatory reminders prior to renewing 12-month contracts and a 14-day cooling-off period will be implemented.
The Department for Business and Trade stated that these rules aim to streamline the process of canceling unwanted subscriptions. This will include the option for customers to cancel online instantly, avoiding lengthy phone queues for customer service.
Expected to take effect in Spring 2027, the regulations are projected to collectively save consumers around £400 million, equating to £14 per month per unnecessary subscription.
The government estimates there are approximately 155 million active subscriptions in the UK, with nearly 10 million considered unwanted. Out of these, about 1.3 million customers face unexpected auto-renewals.
Richard Walker, a prominent advocate for cost of living issues and the CEO of Iceland, commented, stating, “In times of financial sensitivity, these new regulations will provide consumers with the clarity and autonomy they deserve.
“By preventing companies from quietly transitioning individuals to costly contracts and simplifying cancellations, households can better manage their budgets and retain more of their hard-earned money.”
Minister for Consumer Protection Kate Dearden remarked, “There is nothing more frustrating than losing money from your account due to a forgotten subscription.
“The reinforcement of subscription laws will be a relief for those grappling with rising expenses. These new rules empower consumers by enhancing subscription transparency, fairness, and ease of cancellation.”
Sue Davies, Head of Consumer Rights Policy at Which?, added, “Subscription traps can lead to financial burdens during times of economic struggle. Strengthening subscription laws will offer relief to those facing escalating costs.
“These regulations will empower consumers by providing clear information and safeguards.”
At Reach and across our entities we and our partners use information collected through cookies and other identifiers from your device to improve experience on our site, analyse how it is used and to show personalised advertising. You can opt out of the sale or sharing of your data, at any time clicking the “Do Not Sell or Share my Data” button at the bottom of the webpage. Please note that your preferences are browser specific. Use of our website and any of our services represents your acceptance of the use of cookies and consent to the practices described in our Privacy Notice</a
