Government Introduces New Laws to Ease Subscription Cancellations
New legislation will make it simpler for consumers to cancel subscriptions and obtain refunds for unwanted automatic renewals, the government has announced.
A crackdown on so-called "subscription traps" could save the average individual nearly £170 annually, according to the Department for Business and Trade (DBT).
Consumers will no longer be required to endure "endless phone calls" to terminate a subscription. Additionally, they will benefit from a 14-day cooling-off period following the conclusion of a trial period or when an annual subscription automatically renews.
The changes are anticipated to take effect in spring 2027.
The new laws will allow individuals to cancel subscriptions "with the click of a button," the DBT stated.
Companies will be mandated to provide clear upfront information to prevent consumers from being "silently rolled onto expensive contracts," the department added.
Furthermore, firms will be obligated to send reminders to customers when a free or discounted trial is nearing its end or when contracts lasting a year or longer are approaching renewal.
The 14-day cooling-off period will permit consumers to receive a "full or proportionate refund" if they forget to cancel after a free trial or when the subscription auto-renews.
The DBT estimates that these measures could save the public a total of £400 million annually.
Consumer Experiences Highlight Subscription Challenges
Kim Biggs from Lincolnshire shared her experience with , stating she has been "caught out" by annual subscription fees that renew automatically.
Kim was notified that her free trial of AVG, the antivirus software, was about to expire. She described the process of attempting to cancel the subscription as "exasperating."
"It took quite a lot of time to wade through all the pages, all the information that was presented when you first clicked onto the 'un' part on the website."
She continued,
"Eventually I clicked on the right options to get an online form to request a refund. I completed this but did not receive my refund."
Kim also noted that the phone number for AVG's support centre was not easily found online.
When she eventually spoke to a support agent, Kim said she was informed,
"The form that I'd sent in is basically disregarded by them, that you have to speak to them through the support centre to get your refund, which was really annoying."
She added,
"I had to keep repeating that I just wanted a refund, as she was very persistent in pushing the products available, trying to get me to change my mind."
The BBC has requested a comment from AVG.
Expert Opinions and Exemptions
Sue Davies, head of consumer rights policy at Which?, commented on the issue, stating that subscription traps can "wreak havoc on finances."
"These new rules will help put consumers in the driving seat with proper transparency and protection," she said.
Certain memberships for charitable, cultural, and heritage organisations will be exempt from the new regulations.
Scope of the Problem
The DBT estimates there are 10 million unwanted, active subscriptions across the UK.
It reported that more than 3.5 million people are being "quietly rolled from free or discounted trials into fully costed contracts," while another 1.3 million are caught out by unexpected auto-renewals.
