New UK Laws to Tackle Subscription Traps
New governmental legislation, anticipated to come into force in spring 2027, will significantly enhance consumer rights regarding online subscriptions. The Department for Business and Trade (DBT) has announced measures to combat 'subscription traps', which are currently estimated to cost the public £400 million a year.
Key Changes for Consumers
Under the new laws, consumers will be able to cancel subscriptions with greater ease, often with a simple click. Companies will be mandated to provide transparent information upfront, preventing individuals from being unknowingly transitioned onto expensive contracts after free or discounted trials. Furthermore, firms will be required to issue timely reminders before trials conclude or annual subscriptions automatically renew.
A crucial addition is a 14-day cooling-off period. This will allow individuals to obtain a full or proportionate refund if they forget to cancel a free trial or if an annual subscription auto-renews unexpectedly.
Industry and Consumer Group Reactions
Consumer rights advocates have widely welcomed the impending changes. Sue Davies, Head of Consumer Rights Policy at Which?, stated that these rules will "put consumers in the driving seat with proper transparency and protection." While some businesses, like recipe box firm Gousto, already adhere to these principles, others will need to adjust their practices. Certain memberships, such as those for charitable, cultural, and heritage organisations, will be exempt from the new regulations.
The DBT estimates that approximately 10 million unwanted, active subscriptions exist across the UK, with millions unknowingly rolled into costly contracts or caught out by unexpected auto-renewals.