Burnham brings forward ban on 'subscription traps' to ease cost of living

Consumers will soon find it easier to cancel unwanted subscriptions and will be protected from misleading "pretend prices" as Prime Minister Andy Burnham brings forward a package of consumer protection measures. These changes, originally announced under the previous government, are being fast-tracked to provide immediate relief amid the ongoing cost of living crisis.

Burnham's government is prioritizing an end to "subscription traps," which often lock consumers into recurring payments without clear cancellation processes. Additionally, the measures will crack down on retailers using fake "was" prices and other deceptive discounting tactics that trick shoppers into believing they are getting better deals. These initiatives are part of Burnham's broader commitment to implementing "everyday fixes" to ease financial pressures on families.

“

I'm determined to pull every single lever we can to provide people with some room to breathe on the cost of living.

The government announced that these measures, initially expected in spring of next year, will now be implemented by January 2027. When first proposed, the plans were estimated to save consumers approximately £400 million annually, or up to £170 per person. The government will launch a consultation this autumn to finalize the implementation details of these new regulations.

Consumer advocacy group Which? has repeatedly highlighted instances of businesses misleading customers with deceptive deals. Sue Davies, head of consumer rights policy at Which?, welcomed the announcement and urged the government to enact the rules swiftly. However, the shadow chancellor, Mel Stride, criticized the measures as "reheated" and accused the prime minister of lacking new ideas, questioning the delay in implementing legislation passed by the previous administration. The Digital Markets, Competition and Consumer Act, enacted in 2024, already included provisions against hidden fees and fake reviews, and facilitated easier subscription cancellations.

“

The cost of living didn't become a problem last week, so you have to ask why it has taken Labour so long to enact legislation passed by the previous government.