It feels like we have been discussing subscription traps for years. However, after a lengthy consultation, the passage of a new law, and further debate on its implementation, we finally have updated regulations to protect consumers when signing up for subscriptions.
How Much Will Consumers Save?
According to the Department for Business and Trade, the crackdown on businesses that exploit customers through ongoing services—whether deliberately or by misleading them—is expected to save a staggering £400 million annually.
Kate Dearden, Minister for Consumer Protection, stated: "There is nothing more frustrating than seeing hard-earned money disappear from your account for a subscription you had forgotten about. These new rules will put consumers back in control of their finances, making subscriptions clearer, fairer, and far easier to cancel."
Curiously, the new rules will not take effect until spring 2027. Nevertheless, businesses can choose to comply immediately, and existing laws already offer protection for those stuck with unwanted services.
What Is a Subscription Trap?
A subscription trap is any ongoing agreement where you pay for goods or services but encounter difficulty exiting the contract. You may not even realise you were signed up. These traps often involve free trials for voucher discount schemes or gym memberships. While many subscriptions are legitimate, others are outright rip-offs, charging you for things you neither want nor need.
Subscriptions are not always easy to spot. Most debit your account monthly, but some charge a single annual sum, making them easy to miss. Additionally, most subscriptions use a Continuous Payment Authority, which often goes unnoticed on bank statements. They can also appear on e-payment services or mobile phone bills.
Your Current Rights with Subscriptions
When you purchase something, you enter into a contract with the business. This agreement does not need to be in writing; it occurs when you buy in a shop, online, or over the phone. Existing laws, such as the Consumer Rights Act and Consumer Contract Regulations, cover situations where goods or services do not arrive, are not as advertised, are damaged, or do not last a reasonable time—including subscription services. You can also change your mind within 14 days of buying online, with some exceptions.
The Competition and Markets Authority notes that the Consumer Rights Act 2015 requires contract terms—including those for renewal or cancellation—to be fair and transparent. Some subscriptions charge varying monthly amounts, but businesses can only do this with advance notice and your permission.
High-profile subscription trap scams often involve free trials. The trap occurs when you are charged for substandard goods or items that never arrive after the trial ends. Even before the new law, you had the right to cancel the payment with your bank or card provider and demand a refund.
What the New Subscription Traps Law Covers
The Digital Markets, Competitions and Consumers Act 2024 addresses subscription traps among other issues. The new rules require:
- Clear, simple information before signing up for any subscription.
- Reminders before free or discounted trials end, or before 12-month (or longer) contracts auto-renew.
- Straightforward cancellation methods—ideally with one click—allowing you to cancel as easily as you signed up.
- A new 14-day cooling-off period after a free or discounted trial ends, or when a contract renews for 12 months or longer.
Can You Cancel a Contract or Subscription If Unhappy?
Absolutely. If you are locked into a longer-term contract, such as a gym membership or magazine subscription, you can leave without penalty if you demonstrate you are not receiving what you paid for. Examples include:
- Not receiving what was explicitly promised at sign-up.
- Significant changes to the service over time.
- Misrepresentation of the quality of goods or services.
You can also request a refund if you paid upfront for an annual subscription.
Dealing with Difficult Retailers
Some shops may refuse refunds or contract exits despite your legal rights. They often hope you will give up. Push back. If the business ignores you, request an email address to make a formal complaint. Cite the relevant laws and explain why you are unhappy and why the service is not what you paid for. Clearly state your desired resolution, such as a full refund, partial refund, or exit without fees.
If they remain difficult, threaten to take the case to the Small Claims Court. Guides on this process are available on the Mirror website.
How to Handle Dodgy Subscription Trap Firms
If you discover you have been paying for a subscription trap after a free trial—or are being debited for an unwanted service—play hardball. Cancel the contract immediately with your bank, card provider, or e-payment service. If you were misled into the contract or did not authorise the charges, demand a full refund. The firm must prove you agreed to the contract. Even if you signed up for a free trial, you can request your money back if you are charged amounts you never agreed to.
Martyn James is a leading consumer rights campaigner, TV and radio broadcaster, and journalist.
