New laws to make it easier to cancel subscriptions

New laws to make it easier to cancel subscriptions

The government has announced that new legislation will simplify the process of cancelling subscriptions and obtaining refunds for unwanted auto-renewals.

According to the Department for Business and Trade (DBT), a crackdown on "subscription traps" could save the average consumer nearly £170 annually.

Under the new laws, consumers will no longer be required to navigate "endless phone calls" to cancel subscriptions, and they will benefit from a 14-day cooling-off period following the conclusion of a trial period or when an annual subscription automatically renews.

These changes are projected to take effect in spring 2027, making it possible for individuals to cancel subscriptions "with the click of a button," as stated by the DBT.

Additionally, companies will be mandated to provide clear information upfront to prevent consumers from being "silently rolled onto expensive contracts." To further safeguard consumer rights, firms will be required to issue reminders when a free or discounted trial is nearing its expiration, as well as prior to the renewal of contracts that are year-long or longer.

The 14-day cooling-off period will ensure individuals can receive a "full or proportionate refund" in cases where they forget to cancel following a free trial or when their subscription auto-renews. The DBT anticipates that these changes could save consumers a collective total of £400 million each year.

Kim Biggs from Lincolnshire shared her experience with BBC News, expressing frustration over being "caught out" by automatically renewing annual subscription fees. Kim recounted that while she was notified of the impending end of her free trial for AVG, the anti-virus software, attempting to cancel the subscription was "exasperating."

She explained, "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. Ultimately, I clicked on the right options to get an online form to request a refund. I completed this but did not receive my refund."

Kim also noted the difficulty in locating the phone number for AVG's support center. Upon speaking with a support agent, she was frustrated to learn that her submitted form would be disregarded and that she needed to communicate directly with them to obtain her refund. "I had to keep repeating that I just wanted a refund, as she was very persistent in pushing the products available, trying to get me to change my mind," Kim added.

The BBC has reached out to AVG for a comment.

'Nothing more frustrating'

Sue Davies, head of consumer rights policy at Which?, commented that subscription traps can "wreak havoc on finances."

"These new rules will help put consumers in the driving seat with proper transparency and protection," she stated.

It is important to note that certain memberships for charitable, cultural, and heritage organizations will be exempt from the new regulations. The DBT currently estimates that there are approximately 10 million unwanted active subscriptions across the UK.

Furthermore, the department indicated that over 3.5 million individuals are being "quietly rolled from free or discounted trials into fully costed contracts," while an additional 1.3 million consumers are facing unexpected auto-renewals.