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Burnham vows crackdown on ‘rip-off’ business practices to ease cost of living

From The Guardian · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • The UK government will ban misleading pricing practices, such as fake "was" prices, to help consumers save money.
  • New rules will also make it easier for people to cancel unwanted subscriptions, with protections brought forward to January.
  • These measures are part of a broader strategy to address the cost of living crisis by tackling "rip-off" business practices.

The UK government is set to implement a crackdown on "rip-off" business practices, aiming to ease the cost of living for consumers. The measures include banning misleading pricing tactics and simplifying the process of canceling unwanted subscriptions.

If something is advertised as half price, it should actually be half price. We’ll make sure that when families snatch a deal, they can be confident they’re actually saving. That’s the least they deserve when budgets are so tight.

— Andy BurnhamThe Prime Minister highlighted the importance of genuine discounts for families struggling with tight budgets.

Consumers are expected to save approximately £400 million annually through these initiatives. Prime Minister Andy Burnham emphasized the government's commitment to intervening where possible to save people money and remove obstacles. "Where the government can save people money, remove an unnecessary obstacle or simply make something work better, we should and we will," he stated.

The ban on misleading pricing will target practices like fake "was" prices and invented reductions, ensuring that advertised discounts are genuine. Retailers will be prevented from inflating prices before a sale to create a false impression of savings. Ministers will consult on the specifics of these practices in the autumn, with changes expected through secondary legislation.

Too many companies want you to sign up in seconds but then make it feel impossible to leave. It’s exhausting.

— Andy BurnhamBurnham described the frustration consumers face when trying to cancel subscriptions.

Furthermore, new protections against subscription traps will be accelerated, taking effect in January instead of next spring. These rules will mandate clearer information during sign-ups, regular reminders, and easier cancellation processes. Consumers will also benefit from a 14-day cooling-off period after trials or contract renewals. Government figures indicate that the average person has three subscriptions costing around £500 a year, with an estimated £1.6 billion spent annually on unwanted ones.

We won’t be able to solve every frustration overnight. But where the government can save people money, remove an unnecessary obstacle or simply make something work better, we should and we will.

— Andy BurnhamThe Prime Minister outlined the government's approach to addressing consumer frustrations and the cost of living.
DistantNews Editorial

Originally published by The Guardian. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.