188体育

• Consultation launched on measures to crack down on 鈥渟ubscription traps鈥� and better protect shoppers听听

• Proposed measures will stop complicated websites and restrictive call centres preventing refunds and cancellations.听听听

• Unwanted subscriptions cost families 拢14 per month per subscription and 拢1.6 billion a year in total听

New proposals to crack down on subscription traps have been unveiled today as the government launches a consultation on measures to make it easier for consumers to get a refund or cancel unwanted subscriptions.听听听

鈥淪ubscription traps鈥� are instances where consumers are frequently听misled into signing up for a subscription through a 鈥渇ree trial鈥� or reduced price offer. In some cases if the consumer doesn鈥檛 cancel the trial within a set amount of time, they are often automatically transferred to a costly subscription payment plan.听听听

It comes as new figures reveal consumers are spending billions of pounds each year on unwanted subscriptions due to unclear terms and conditions and complicated cancellation routes. Nearly 10 million of 155 million active subscriptions in the UK are unwanted, costing consumers 拢1.6 billion a year.听听

Subscriptions can be for anything from magazines to beauty boxes, with many subscriptions having complicated or inconvenient cancellation processes such as phone lines with long waits and restrictive opening hours that can leave consumers feeling trapped.听听 听

The consultation sets out proposals to make the refunds and cancellation processes simpler, with a requirement on retailers for greater transparency on their subscription programmes in a way that is proportionate to balance consumer rights without placing unnecessary burdens on businesses.听听听

Business Secretary Jonathan Reynolds said:听听听

Our mission is to put more money back into people鈥檚 pockets and improve living standards across this country, tackling subscription traps that rip people鈥檚 earnings away is an important part of that.听听听

Everyone hates seeing money leave their account for a subscription they thought they鈥檇 cancelled, or a trial that unexpectedly gets extended.听听听

We鈥檙e looking to hear from as many businesses, consumer groups, and other interested groups as possible to allow us to set fair regulations that stop this corporate abuse of power whilst retaining the benefits of subscriptions for consumers and businesses.听

The government is committed to working with business and consumers alike to deliver competitive markets that see lower prices, more choice and a fairer deal for all.听听听

This is why the government is inviting their views on developing proposals on how refunds should work when a consumer wants to exit a contract, how they should be notified about renewals or the ending of a free trial, and the arrangements businesses need to put in place to help customers conveniently cancel a contract. This includes clear websites that signpost them directly to the cancellation process.听听听

By putting an end to these exhaustive processes and helping consumers take back control of their money, individuals could save on average 拢14 per month for each unwanted subscription they are able to leave earlier.听听听

The consultation will seek views from a variety of groups who have an interest in the subscriptions market including businesses who offer subscriptions, consumer groups, and enforcement agencies.听听听

The consultation follows the Digital Market, Competition and Consumers Act coming into effect earlier this year.听听

NOTES TO EDITORS听听

• The consultation has been published here: Consultation on the implementation of the new subscription contracts regime - 188体育听

• The government is consulting on the detail of how the regime may work, including:听听听

• How returns and refunds work if a consumer exercises their statutory 14-day cooling-off right to cancel after signing up or after a trial or long-term contract (12 months or more) auto-renews. This includes how the rules work depending on whether the subscription contract is for goods, services, or digital content.听听听听

• How remedies work if a consumer exercises their statutory right to cancel their contract because a trader didn鈥檛 comply with certain duties, which are terms implied into a subscription contract.听听听听

• How contract information and notices must be provided.听听听听

• What arrangements traders must put in place to ensure exit processes are straightforward.听听听听

About the Digital Markets, Competition and Consumers Act听听听

• The Digital Markets Competition and Consumer Act gained Royal Assent in May 2024. The new rules will ensure consumers:听听听听听

• have clear information before signing up to a subscription,听听听听听

• receive reminders about their ongoing subscriptions听听听

• have a 14-day period to cancel after a trial or long-term subscription auto-renews听听听

• can exit a subscription generally as easily as they signed up, including being able to cancel online if they signed up online.听听听听

• Link: 听听听

• Link: 听听听

• The subscriptions chapter in the Digital Markets, Competition and Consumers Act 2024 applies to the United Kingdom and future secondary legislation to implement the regime will have the same territorial application.