Ban on ‘Subscription Traps’ Brought Forward by Three Months

The UK government has announced it will bring forward the ban on “subscription traps” by three months, an effort to address the country’s cost of living crisis. The measures announced by Prime Minister Andy Burnham are a step in the right direction, but they may not go far enough to protect consumers from exploitative practices.

Statistics show that 10 million unwanted subscriptions exist across the UK, with over 3.5 million people being rolled into fully costed contracts without their knowledge or consent. The government estimates these changes could save consumers £400m a year, though this figure pales in comparison to the crippling effect of inflation on household budgets.

Burnham’s “everyday fixes” are likely to be seen as a Band-Aid solution, addressing symptoms rather than underlying issues driving the cost of living crisis. Measures announced so far include making it easier for consumers to cancel unwanted subscriptions and stopping auto-renewals at higher prices. While these measures are welcome, they hardly represent groundbreaking change.

One egregious practice that will finally be outlawed is the use of “pretend prices” by retailers. This includes ubiquitous “was” price labels, made-up discounts, and misleading recommended retail prices (RRPs). The impact on consumer decision-making can be significant.

Shadow Chancellor Mel Stride has accused the government of reheating old ideas, while Labour’s own record on consumer protection has come under scrutiny. The Digital Markets, Competition and Consumer Act, passed by the Conservatives in 2024, already cracked down on hidden fees and fake reviews online.

As the government launches a consultation to decide how these new measures should be implemented, it remains to be seen whether they will go far enough to address consumer groups’ concerns. Which? has repeatedly exposed businesses engaging in dodgy deals that aren’t what they seem. Sue Davies, head of consumer rights policy at Which?, welcomed the announcement but called for swift implementation.

However, swift implementation may be difficult given the government’s own fiscal constraints. Chancellor John Healey has made it clear he will oversee strong fiscal discipline, which could limit the scope for meaningful change in the upcoming Budget. The Liberal Democrats have urged Burnham to go further to protect consumers.

The cost of living crisis shows no signs of abating anytime soon. As the government continues to dabble with short-term fixes, it’s worth remembering that some issues have been brewing for years. The industry’s reliance on auto-renewals and subscription traps has been well-documented, yet little has been done to address root causes.

In the face of rising inflation and stagnant wages, it’s time for more than just Band-Aid solutions. The government must think bigger – about creating a fairer marketplace that rewards competition and innovation rather than exploiting consumers’ vulnerability. Burnham’s measures are a start, but they may not be enough to stem the tide of financial hardship facing many families.

As the UK grapples with its cost of living crisis, one thing is clear: this problem requires more than just short-term fixes. It demands a fundamental rethink of how our economy works – and who it serves.