A consultation has been launched on measures to crack down on “subscription traps” and better protect shoppers, as new data showed unwanted subscriptions could be costing families £14 per month per subscription and £1.6bn a year in total.
The UK government hopes the proposed measured will make it easier for consumers to get a refund or cancel unwanted subscriptions.
The Department for Business and Trade described “subscription traps” as instances where consumers are frequently misled into signing up for a subscription through a “free trial” or reduced price offer. In some cases if the consumer doesn’t cancel the trial within a set amount of time, they are often automatically transferred to a costly subscription payment plan.
The consultation has set out proposals to make the refunds and cancellation processes simpler, with a requirement on retailers for greater transparency on their subscription programmes in a way that is proportionate to balance consumer rights without placing unnecessary burdens on businesses.
Business Secretary, Jonathan Reynolds, said: “Our mission is to put more money back into people’s pockets and improve living standards across this country, tackling subscription traps that rip people’s earnings away is an important part of that.
“Everyone hates seeing money leave their account for a subscription they thought they’d cancelled, or a trial that unexpectedly gets extended.
“We’re looking to hear from as many businesses, consumer groups, and other interested groups as possible to allow us to set fair regulations that stop this corporate abuse of power whilst retaining the benefits of subscriptions for consumers and businesses.”
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