Burnham reveals measures to tackle rip-off discounts and subscription traps
There are around 155 million active subscriptions in the UK, with consumers spending an estimated £1.6 billion a year on ones they don't actually want.
The Prime Minister has announced that he will be rolling out a series of ‘everyday fixes’ to help people with the cost of living.
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Andy Burnham is targeting deceptive deals and subscription traps in his efforts to ease the cost of living and give families room to breathe.
Mr Burnham plans to ban retailers from making misleading claims to customers about discounts, after shoppers have complained about outlets artificially inflating prices to give a false sense of value.
The Prime Minister has also announced plans to target subscription traps, where people find it hard to cancel their subscriptions and contracts are automatically renewed at a higher cost.
New rules set to come into force in January 2027 will mean businesses will need to provide clearer up-front information, regular reminders and a much easier exit from contracts.
A new 14-day cooling-off period will also let consumers cancel after a trial or long-term contract renews.
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There are around 155 million active subscriptions in the UK, with consumers spending an estimated £1.6 billion a year on ones they don't actually want.
Certain charitable memberships for cultural and heritage organisations will be excluded from the new subscription rules given the unique role they have in preserving and opening up access to the nation’s history, landscapes, and cultural collections.
Mr Burnham said: “I know people are sick and tired of rip-off discounts and subscription traps.
"Westminster has got used to telling people that everyday hassles like this are just part of life. I don’t think that’s right, especially when the cost of living continues to weigh heavily on so many people’s lives.
"I’m determined to pull every single lever we can to provide people with some room to breathe on the cost of living.
“We’re putting an end to phoney bargains. If something is advertised as half price, it should actually be half price. We’re also making it as easy to leave a subscription as it is to join.
“These are just two of the everyday fixes we’re going to be rolling out – today is just the start. We want to put more money in people’s pockets and give people hope that politics really can work for them and their everyday lives.”
Number 10 has said these measures are the start of a series of practical, everyday fixes that will put more money in people's pockets, give them greater peace of mind, and make life a little easier.
A consultation will launch this autumn to assess whether tactics such as fake "was" prices, invented discounts and misleading recommended retail prices (RRPs) should be added to the list of practices banned under the Digital Markets, Competition and Consumers Act (DMCCA).
Under current laws, it can be difficult for enforcers to take on these cases. Adding these tactics to this list would mean they will automatically be considered unfair, making it easier to crack down while making rules simpler for businesses to follow.
Business, Innovation, Science and Trade Secretary Jonathan Reynolds said: “There’s nothing worse than realising you’ve been fleeced by a dodgy deal, or seen money leaving your account because of a subscription you didn’t want to renew or couldn’t easily cancel.
“This Government is on the side of families working hard to make ends meet, while making sure the rules are clear for businesses and easy to follow.”