New laws aim to make cancelling subscriptions easier

Planned subscription law changes

New laws will make it easier to cancel subscriptions and get refunds for unwanted auto-renewals, the government has said.

The Department for Business and Trade said a crackdown on so-called subscription traps could save the average person nearly £170 a year, with total public savings estimated at £400m annually. The changes are expected to come into force in spring 2027.

Under the new rules, consumers will be able to cancel subscriptions more easily rather than having to make what the government described as endless phone calls. Companies will also have to provide clearer information upfront to help prevent customers from being silently rolled onto expensive contracts.

New consumer protections

Firms will be required to remind customers when a free or discounted trial is about to end, and when contracts lasting a year or more are due to renew.

Consumers will also be given a 14-day cooling-off period after a trial converts into a paid subscription or when an annual subscription automatically renews. During that period, people will be able to seek a full or proportionate refund if they forgot to cancel.

The government said there are 10 million unwanted active subscriptions across the UK. It estimates that more than 3.5 million people are quietly moved from free or discounted trials into fully paid contracts, while another 1.3 million are caught out by unexpected auto-renewals.

Certain memberships for charitable, cultural and heritage organisations will be excluded from the new rules.

Consumer experience

Kim Biggs, from Lincolnshire, said she had been caught out by annual subscription fees that renewed automatically.

She said that after being notified her free trial of AVG anti-virus software was about to end, trying to cancel was exasperating. According to Biggs, it took significant time to work through multiple pages and options on the website before she found an online form to request a refund.

She said she did not receive the refund and later found the company’s support number was not easy to locate online. When she eventually spoke to a support agent, she said she was told the form she had submitted was disregarded and that she had to speak directly to the support centre to get a refund.

Biggs said she then had to keep repeating that she wanted a refund while the agent continued pushing other products. The company has been asked for comment.

Reaction

Sue Davies, head of consumer rights policy at Which?, said subscription traps can wreak havoc on finances.

She said the new rules would help put consumers in the driving seat with proper transparency and protection.