The UK government has announced plans to reform how companies can offer subscription services in an effort to improve the consumer experience.
Announced by the Department for Business and Trade (DBT), the new laws concern how easy companies can make it to manage or cancel paid subscriptions.
DBT claimed the new measures could save UK consumers around £400m every year in the form of avoiding subscription “traps”, wherein users of a service are in some way misled or discourage from cancelling subscriptions.
Under the new rules, firms will have to ensure a simple and clear route to cancelling subscriptions and avoid users being quietly rolled onto expensive contracts.
“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,” said Minister for Consumer Protection Kate Dearden.
“These new rules will put consumers back in control of their money – making subscriptions clearer, fairer and far easier to cancel.”
The rules are set to come into force in spring 2027 and will include requirements to implement reminders before the end of contracts and free trials, straightforward cancellations and a 14-day “cooling off period” after a free or discounted trial ends or when a contract renews for 12 months or longer.
“Subscription traps can be costly and wreak havoc on finances that are already under strain from the cost-of-living crisis,” said Sue Davies, head of consumer rights policy at Which?.
“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.”