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Burnham brings forward ban on 'subscription traps'

newsAug 10, 20262691

Prime Minister Andy Burnham has brought forward a package of consumer protections to outlaw so-called subscription traps and curb misleading retail pricing. Businesses will have to provide clearer up-front information, regular reminders and much easier ways for customers to exit contracts, and firms must make it clear when contracts auto-renew at a higher price. Burnham is also vowing to stop retailers using misleading "was" prices, invented discounts and misleading recommended retail prices; a government consultation on implementation will open this autumn. The measures, first announced under Sir Keir Starmer in April, were expected to take effect next spring but will now be implemented by January 2027. When announced in April the government estimated the changes would save consumers £400 million a year, or up to £170 per person, and cited 10 million unwanted active subscriptions, including more than 3.5 million quietly rolled from trials and 1.3 million hit by unexpected auto-renewals. Consumer group Which? welcomed the move, while shadow chancellor Mel Stride called the measures "reheated" and said the prime minister "has already run out of ideas."

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