New laws to make it easier to cancel subscriptions

The UK government has announced new regulations aimed at simplifying the process of canceling subscriptions and securing refunds for auto-renewing services. These measures are designed to address common consumer frustrations with “subscription traps,” potentially saving households over £170 annually, according to the Department for Business and Trade (DBT).

Key Provisions of the New Regulations

Under the proposed changes, consumers will gain a 14-day cooling-off period after completing a trial or when an annual subscription renews automatically. This allows time to reconsider and request a full or partial refund without the need for endless phone calls. Companies will also be required to provide clear, upfront details to prevent users from being silently enrolled in costly contracts.

Additionally, firms must send reminders before the end of free or discounted trials and before renewing long-term subscriptions. The DBT estimates that these rules could save the public £400 million yearly by reducing accidental or unwanted commitments.

Consumer Experiences

“Trying to cancel the subscription was 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 ‘unsubscribe’ part on the website,” Kim Biggs from Lincolnshire shared.

Kim described being caught out by an auto-renewing annual subscription for AVG anti-virus software. She noted that the support centre’s phone number was difficult to locate online and that the process became frustrating when she spoke to an agent. The agent insisted she contact them directly for a refund, despite her attempts to complete the process online.

Impact Assessment

The DBT reports that 10 million unwanted subscriptions are currently active across the UK, with 3.5 million people unknowingly transitioning from free trials to paid plans. Another 1.3 million face unexpected auto-renewals. These new laws are expected to take effect in spring 2027, offering greater control and transparency for users.

“Sue Davies of Which? highlighted that subscription traps can wreak havoc on finances. These rules will empower consumers by ensuring clarity and protection,” she said.

Exclusions and Exceptions

Certain memberships, such as those for charitable, cultural, and heritage organizations, will not be included in the new rules. The DBT emphasized that these exceptions are meant to accommodate sectors where subscription models are integral to service provision.