Ofcom fined Virgin Media a record £28m for deliberately preventing customers from cancelling contracts through call-dropping, unnecessary transfers, and excessive holds. This penalty, while welcome, highlights a gap in consumer protection: the fine goes to HM Treasury, not to affected customers, who must compile evidence and submit complaints to seek redress.
Consumer Rights Progress and Pitfalls
The Digital Markets, Competition and Consumers Act 2024 banned subscription traps, fake reviews, and drip pricing, empowering the Competition and Markets Authority to fine companies directly. Which? director Rocio Concha noted positive use against StubHub UK, which was ordered to refund over 50,000 customers and pay a £900,000 fine for drip pricing. Labour also announced laws to ease subscription cancellations and auto-renewal refunds by spring 2027. In the UK, of 155m active subscriptions, about 10m are unwanted.
However, enforcement remains uneven. Unlike StubHub, Virgin Media customers receive no automatic compensation, and the burden of proof lies with them—ironically replicating the friction Virgin was fined for. Consumer rights law prioritises public enforcement over individual compensation, limiting real impact for those already ripped off.
Local Enforcement Crisis
The hollowing out of local authority trading standards has left high streets vulnerable. Rogue traders cost consumers £71.2bn in 2024, up from £22.9bn in 2015. LocalGov reported that 19 local authorities failed to conduct standard business inspections, and dozens deprioritised enforcement measures. National fines against big corporations mean little if local rip-offs go unchecked.
Andy Burnham's devolution agenda could bridge this gap by giving metro mayors and local authorities greater responsibility for consumer enforcement, backed by robust funding. This would allow local policing of markets and early intervention.
Lessons from New York
New York Mayor Zohran Mamdani's 'click-to-cancel' rules mirror Labour's plans but are packaged with a snappy message: 'If it's easy to sign up with one click, it should be just as easy to cancel with one click.' Mamdani's personal touch—admitting he had subscriptions he 'didn't even know' were active—shows the power of boisterous political championing. Burnham could adopt a similar approach to make consumer rights a lived reality, not just a headline.
