The Prime Minister has announced retailers will be banned from making misleading claims about discounts and put an end to so-called subscription traps in a continued bid to help people with the cost of living crisis.
Ending phoney bargains
The move hopes to put an end to pretend prices and deceptive deals which trick customers into a false sense of value. In many cases, outlets increase prices only to immediately advertise "discounts" to make the savings look better than they are which means people often save nothing.
The change to subscription deals, which will kick in in January 2027, is intended to help customers who find it hard to cancel their subscriptions and contracts, including when they are automatically renewed at a higher cost.
New subscription rules
Businesses will instead need to provide clearer up-front information, regular reminders and a much easier exit to contracts, as well as a new 14-day cooling-off period to let consumers cancel after a trial or long-term contract renews.
Announcing the measures, the Prime Minister said it could save people an average of £14 a month for every unwanted subscription, with UK consumers spending an estimated £1.6bn a year on subscriptions they don't actually want.
Prime Minister's statement
Andy Burnham said: "I know people are sick and tired of rip-off discounts and subscription traps. Westminster has got used to telling people that everyday hassles like this are just part of life.
"I don't think that's right, especially when the cost of living continues to weigh heavily on so many people's lives. I'm determined to pull every single lever we can to provide people with some room to breathe on the cost of living.
"We're putting an end to phoney bargains. If something is advertised as half price, it should actually be half price. We're also making it as easy to leave a subscription as it is to join.
"These are just two of the everyday fixes we're going to be rolling out – today is just the start. We want to put more money in people's pockets and give people hope that politics really can work for them and their everyday lives."
Exemptions
Some charitable memberships for cultural and heritage organisations will however be excluded from the new subscription rules due to the role they have in preserving history.
