Consumers will find it easier to cancel unwanted subscriptions under a crackdown on complicated websites and restrictive call centres.
Latest figures suggest almost 10 million of 155 million active subscriptions in the UK are unwanted, costing consumers £1.6 billion a year, the Department for Business and Trade said.
Subscriptions, which can be for anything from magazines to pet treatments, can have complicated or obstructive cancellation processes such as phone lines with long waits and restrictive opening hours that can leave consumers feeling trapped.
Subscription traps are just one way we’re seeing online sales trick people into parting with their money. We hope the Government continues to crack down on these online sales tactics, which are designed to catch shoppers out
So-called ‘subscription traps’ are where consumers are misled into signing up for a subscription through a “free trial” or reduced price offer.
If the consumer does not cancel the trial within a set amount of time, they are often automatically transferred to a costly subscription payment plan.
The DBT said it was consulting on measures to make the refunds and cancellation processes simpler, and would balance consumer rights without placing unnecessary burdens on businesses.
Individuals could save on average £14 per month for each unwanted subscription they were able to leave earlier, it said.
Business Secretary Jonathan Reynolds said: “Everyone hates seeing money leave their account for a subscription they thought they’d cancelled, or a trial that unexpectedly gets extended.
“We’re looking to hear from as many businesses, consumer groups, and other interested groups as possible to allow us to set fair regulations that stop this corporate abuse of power whilst retaining the benefits of subscriptions for consumers and businesses.”
It's encouraging to see the Government press ahead with much-needed laws to tackle this, which will hand consumers far greater control over the subscriptions they take out
It is also consulting on how refunds should work when a consumer wants to exit a contract, how they should be notified about renewals or the ending of a free trial, and the arrangements businesses need to put in place to help customers conveniently cancel a contract – including clear websites that signpost them directly to the cancellation process.
Tom MacInnes, director of policy at Citizens Advice, said: “We’ve been raising the alarm for a long time on subscription traps exploiting consumers. So we’re pleased to see the Government’s new rules taking up our call for people to be able to exit a subscription as easily as they signed up for it.
“Subscription traps are just one way we’re seeing online sales trick people into parting with their money. We hope the Government continues to crack down on these online sales tactics, which are designed to catch shoppers out.”
Which? director of policy and advocacy Rocio Concha said: “Subscriptions can be a convenient way for consumers to receive products and services, but in recent years many consumers have been trapped in unwanted subscriptions.
“It’s encouraging to see the Government press ahead with much-needed laws to tackle this, which will hand consumers far greater control over the subscriptions they take out.”
