Published 2 months ago • loading... • Updated 2 months ago
Subscription trap crackdown launched as ministers introduce new rules
The rules will let consumers cancel online, require renewal reminders and offer refunds, with the Department for Business and Trade estimating £400 million in annual savings.
The Government announced new rules to protect Consumers from "subscription traps," effective early next year, ensuring mandatory reminders before free trials end or contracts of 12 months or more automatically renew.
There are 155 million active Subscription accounts held by Consumers, with 10 million believed unwanted. More than 3.5 million people are "quietly rolled" from trials into paid contracts, while 1.3 million face unexpected auto-renewals.
New regulations require simple online cancellations and offer a 14-day cooling-off period after trials or long-term renewals. Changes aim to save Consumers a collective £400 million annually.
Minister for Consumer Protection Kate Dearden said the rules put Consumers "back in control," while Lord Richard Walker, the Government's "cost-of-living champion," emphasized necessary clarity for household budgets.
Charitable, cultural, and heritage organizations remain exempt from the new requirements due to their role in preserving access to collections. The Government expects implementation early next year.