Subscriptions to be easier to cancel under new laws
The government has announced new laws which will make it easier to cancer subscriptions and receive refunds for autorenewals. The crackdown on “subscription traps” may save an average person almost £170 annually, the Department for Business & Trade (DBT) has said.
People will no longer need to make “endless phone calls” just to cancel subscriptions and will have a fortnight cooling off period after the end of a trial period or when an annual subscription automatically renews.
The new laws are expected to come in during the spring of 2027 and will enable people to cancel a subscription “with the click of a button,” according to the DBT. Companies will have to provide clear information to prevent any customer from being “silently rolled onto expensive contracts,” it said. They will also be required to provide reminders about when a free or discounted trial period is about to end or when a contract that is a year or more is set to be renewed.
The cooling off period allows a person to receive a “full or proportionate refund” in case they forgot to cancel following a free trial or if their subscription has auto renewed.
The DBT says that this could save people a combined total of £400 million per year.
Subscriptions can “wreak havoc on finances,” Which? head of consumer rights policy Sue Davies said. “These new rules will help put consumers in the driving seat with proper transparency and protection.”
According to the DBT, there are as many as 10 million active, unwanted subscriptions across the country, with over 3.5 million people being “quietly rolled from free or discounted trials into fully costed contracts,” and another 1.3 million being surprised by unexpected autorenewals.
Memberships for some charity, heritage, or cultural organisations will be exempt from the new rules.
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