Government announces crackdown on costly subscription traps

The Government has announced a crackdown on unwanted and misleading subscriptions, which will save consumers around £400 million every year.

The new rules will make it simpler and far less painful to escape unwanted subscriptions, stop people from being silently rolled onto expensive contracts and ensure that companies are upfront and open when selling subscription services. This will help tackle the cost-of-living head-on by giving consumers greater control over their spending to help them keep hold of their hard-earned cash at a time when household budgets are under pressure.

Kate Dearden MP, Minister for Consumer Protection, said “There’s nothing more frustrating than seeing money you’ve worked hard for disappear from your account for a subscription you’ve forgotten you had.

“These new rules will put consumers back in control of their money – making subscriptions clearer, fairer and far easier to cancel.”

Once the rules come into force, expected to be in Spring 2027, consumers will benefit from clear, simple information before signing up to any subscription. Reminders before free or discounted trials end, or 12month+ contracts automatically renew. Straightforward cancellations, including online exits for online sign-ups. A new 14-day cooling-off period, after a free or discounted trial ends, or when a contract renews for 12 months or longer

Across the UK, there are 155 million active subscriptions – with nearly 10 million of them believed to be unwanted. Over 3.5 million people are being quietly rolled from free or discounted trials into fully costed contracts, whilst another 1.3 million are caught out by unexpected autorenewals. By making it easier to cancel unwanted services, consumers could save around £14 every month (on average) per unwanted subscription – nearly £170 a year.

Sue Davies, Which? Head of Consumer Rights Policy, said “Subscription traps can be costly and wreak havoc on finances that are already under strain from the cost-of-living crisis. The strengthening of subscription laws will be welcome news for those struggling with rising costs.

“These new rules will help put consumers in the driving seat with proper transparency and protection.”

New measures mark another major milestone in enhancing consumer protections and implementing measures introduced in the Digital Markets, Competition and Consumers Act 2024 (DMCCA).

Lord Richard Walker, the Government’s Cost of Living Champion, said “At a time when every pound matters, these new rules will give consumers the clarity and control they deserve. By stopping companies from quietly rolling people onto costly contracts and making cancellations far simpler, households can stay on top of their budgets and keep more of their money where it belongs: in their own pockets.”

The measures are expected to come into force in spring 2027.