New rules designed to stop consumers getting stuck in unwanted subscriptions are set to come into force earlier than planned.
The Prime Minister has announced that new protections tackling so-called “subscription traps” will now be introduced from January 2027, rather than spring 2027. The changes will make businesses provide clearer information before people sign up, send reminders about subscriptions and make contracts much easier to cancel.
The government is also planning a crackdown on misleading discounts that can make shoppers think they are getting a better deal than they really are.
What is changing with subscription traps?
Subscription traps can leave people paying for services they no longer want, sometimes because cancelling is considerably harder than signing up in the first place. The new rules are designed to change that.
Once they come into force, businesses will be required to:
- Give customers clear information about a subscription before they sign up
- Send reminders before free or discounted trials end and before certain contracts automatically renew
- Provide a straightforward way to cancel, including online cancellation where the subscription was taken out online
- Give consumers a new 14-day cooling-off period after a free or discounted trial ends or a contract of 12 months or more renews.
Why are the new subscription rules being brought forward?
The protections had been expected to take effect in spring 2027. The government has now said it plans to introduce them in January as part of a wider package of measures aimed at easing cost-of-living pressures.
The scale of the problem is significant. Government figures suggest there are almost 10 million unwanted active subscriptions in the UK. More than 3.5 million people are estimated to be moved from free or discounted trials onto full-price subscriptions, while around 1.3 million are caught out by unexpected automatic renewals.
The government has previously estimated that the measures could save consumers around £400 million a year, with people able to save an average of around £14 a month for each unwanted subscription they can leave earlier.
Government also targets misleading discounts
The government is also planning to crack down on misleading discounts that make deals look better than they really are. This could include retailers using inflated “was” prices, made-up discounts or misleading recommended retail prices (RRPs) to suggest shoppers are making a bigger saving.
While misleading pricing is already against consumer law, the government wants to make it easier to take action against these practices.
A consultation on the proposed changes will launch this autumn.
Where are we now?
For consumers, the direction of travel is clear: businesses will be expected to make it easier to understand what you are signing up for, clearer when your payments are about to change and much simpler to leave when you no longer want the service.
The important thing to remember is that the new subscription rules are not yet in force. Until January 2027, your existing consumer rights continue to apply. However, depending on the type of subscription and how you bought it, you may already have cancellation rights.
For many contracts bought online, over the phone, or away from a trader’s premises, consumers generally have a 14-day cooling-off period, although there are exceptions and the rules can differ for digital content and services. You may also have additional rights where a service is not being provided as agreed.
If you want to cancel a subscription now, check the terms of your contract and contact the provider if anything is unclear.
