New laws to protect customers from “subscription traps” – how much could you SAVE?
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Customers will be able to cancel subscriptions and get refunds for unwanted auto-renewals more easily under new rules announced by the government.
A nationwide crackdown on “subscription traps” could save customers £170 a year on average, according to the Department for Business and Trade (DBT).
Subscription services have grown by 47.5% since January 2020 and around 9 in 10 customers now have at least one subscription according to research from Barclays.
Under the new rules, customers will be given a 14-day cooling-off period after a trial ends or when an annual subscription automatically renews.
Companies must also provide:
- Clear, simple information before customers sign up to a subscription
- Reminders before a free trial, discounted trial or 12-month+ contract automatically renew
- Straightforward cancellations including online exits for online sign ups
The changes are expected to come into effect from spring 2027.
There are roughly 155 million active subscriptions across the UK with around 10 million believed to be unwanted.
Over 3.5 million people are rolled over from free or discounted trials to full priced contracts. Of these around 1.3 million are caught out by auto-renewals.
These services include streaming platforms such as Netflix and Disney+ as well as games and online tools.
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