A major overhaul targeting ‘subscription traps’ is set to help UK households save an estimated £400 million each year. Scheduled to come into force in Spring 2027, new regulations will ensure that customers receive clear reminders before free or discounted trials expire or before contracts lasting 12 months or more automatically renew.
Under the new rules, consumers will be provided with straightforward, transparent information before signing up for any subscription service. They will also receive advance notifications before trial periods end and before long-term contracts roll over, preventing unexpected charges.
Additionally, the reforms introduce easier cancellation procedures, including the option to cancel online for services initially signed up for digitally. A new 14-day cooling-off period will also be introduced, giving consumers time to reconsider their commitment after a free or discounted trial ends or when a long-term contract renews.
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Currently, there are 155 million active subscriptions across the UK, with nearly 10 million believed to be unwanted or unnoticed. Over 3.5 million people find themselves automatically moved from free or discounted trials into paid contracts without clear consent, while another 1.3 million are caught off guard by surprise auto-renewals.
Minister for Consumer Protection Kate Dearden commented, “These new rules will put consumers back in control of their money – making subscriptions clearer, fairer, and far easier to cancel.”
Sue Davies, head of consumer rights policy at Which?, highlighted the impact on finances: “Subscription traps can be costly and wreak havoc on budgets already strained by the cost-of-living crisis. Strengthening subscription laws will be welcome news for those facing rising expenses, helping consumers take charge with greater transparency and protection.”
Lord Richard Walker, the Government’s cost-of-living champion, added, “At a time when every pound counts, these new rules will provide consumers with the clarity and control they deserve. By preventing companies from silently moving customers onto expensive contracts and simplifying cancellations, households can better manage their budgets and keep more money where it belongs—in their pockets.”