The UK government has unveiled proposals to tackle subscription traps, aiming to simplify the process for consumers to obtain refunds or cancel unwanted subscriptions.
The initiative follows recent figures indicating that almost ten million of the 155 million active subscriptions in the UK are unwanted, costing consumers £1.6bn ($2.03bn) annually.
The government has launched a consultation that outlines proposals to streamline refunds and cancellation processes, requiring retailers to ensure greater transparency in their subscription programmes.
The aim is to balance consumer rights with minimal burden on businesses.
The government aims to foster competitive markets with lower prices, more choice and fairer deals for all.
It seeks input on developing proposals regarding how refunds should operate when consumers wish to exit contracts, notifications about renewals or the end of free trials, and the arrangements businesses need to facilitate convenient contract cancellations.
This includes clear website navigation for the cancellation process.
By addressing these processes, consumers could save an average of £14 per month for each unwanted subscription they exit earlier.
UK Business Secretary Jonathan Reynolds said: “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.
“Everyone hates seeing money leave their account for a subscription they thought they’d cancelled, or a trial that unexpectedly gets extended.
“We’re looking to hear from as many businesses, consumer groups and other interested groups as possible to allow us to set fair regulations that stop this corporate abuse of power whilst retaining the benefits of subscriptions for consumers and businesses.”
The consultation will gather views from stakeholders including businesses offering subscriptions, consumer groups and enforcement agencies.
The consultation follows the Digital Market, Competition and Consumers Act, which came into effect in 2024 having received Royal Assent on 24 May. It introduces key changes to the UK’s competition and consumer regulations, aiming to support small businesses, reduce costs for consumers, foster innovation and promote economic growth.
