Prime Minister Andy Burnham has announced that consumers will soon see an end to so-called subscription traps and misleading "pretend prices", as part of an accelerated package of consumer protections. The changes, first unveiled under his predecessor Sir Keir Starmer in April, will now come into force by January 2027 rather than the previously planned spring timeline. Burnham says the measures are designed to give households greater financial breathing room amid ongoing cost-of-living pressures.
The plans will make it simpler for consumers to cancel subscriptions they no longer want and will prevent companies from quietly shifting customers onto costly contracts without clear consent. Separately, Burnham intends to outlaw retailers' use of fake "was" prices, invented discounts and misleading recommended retail prices, which he argues mislead shoppers into believing they are getting better deals than they actually are.
What new protections will consumers get?
According to reporting from Straits Times, businesses will be required to give clearer up-front information about subscription terms, send regular renewal reminders, and offer a 14-day cooling-off period after a free trial or long-term contract automatically renews. The government has reiterated that the overall package could save consumers £400 million a year collectively, or up to £170 per person.
Burnham said:
I'm determined to pull every single lever we can to provide people with some room to breathe on the cost of living.
How would the crackdown on misleading prices work?
The government plans to launch a consultation this autumn examining how to implement the ban on fake discounting practices. Per the Telegraph, the consultation will explore whether fake "was" prices, invented discounts and misleading RRPs should be explicitly banned under the Digital Markets, Competition and Consumers Act, the same law used to tackle hidden fees and fake reviews. The same report notes that certain charitable memberships for cultural and heritage organisations will be exempted from the new subscription rules, though it is unclear how that exemption will interact with the broader discounting crackdown.
Where did these rules originally come from?
The subscription-trap provisions were not created from scratch by Burnham's government. Per a report from the Institution of Analysts and Compliance Specialists, the rules were first drafted in February before being passed by Parliament in 2026 as part of the Digital Markets, Competition and Consumer Act, legislation originally introduced by the previous Conservative government in 2024. Per analysis from Clifford Chance, an earlier consultation on subscription contracts had been scheduled to run until 10 February 2025, and the rules are intended to cover both auto-renewal contracts and free trials that convert into paid subscriptions.
This announcement follows Burnham's broader push on living costs since taking office. He has already told his cabinet to prioritise the issue, introducing a VAT cut on household energy bills and setting up a Manchester-based Downing Street unit, as detailed in earlier coverage of his first cabinet meeting. He has also confirmed plans for a UK-wide cost-of-living tour, including a likely stop in Port Talbot, as described in reporting on his nationwide tour, even as he faces criticism over a prisoner early-release row and rising inflation.
How have opponents responded?
Shadow Chancellor Mel Stride dismissed the measures as recycled policy, arguing the government has run out of fresh ideas. He said:
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.
Consumer group Which? welcomed the move. Its head of consumer rights policy, Sue Davies, said the organisation has repeatedly uncovered household-name businesses using dubious deals that misrepresent their true value, and urged the government to bring in the rules swiftly.
What happens next?
The subscription-cancellation rules are due to take legal effect in January 2027, according to the Telegraph. The government's consultation on banning misleading discount tactics is expected to open this autumn. Beyond these consumer measures, Burnham is likely to face pressure for more far-reaching cost-of-living action when Chancellor John Healey delivers the Budget on 28 October, though Healey has signalled he intends to maintain strong fiscal discipline, limiting the scope for major new spending.
Key Facts
- Subscription cancellation reforms will now take effect by January 2027, brought forward from a planned spring 2027 start.
- The package is projected to save consumers £400 million annually, or up to £170 per person.
- New rules will mandate clearer contract information, renewal reminders and a 14-day cooling-off period after trials or renewals.
- A government consultation on banning fake "was" prices and misleading discounts will launch this autumn.
- Certain charitable memberships for cultural and heritage organisations will be exempt from the subscription rules.
