Labour vows to end default auto-renewal in crackdown on subscription traps
14 April 2023, 22:34
The party would legislate to ensure people would opt in to rather than opt out of contracts that automatically renew.
Labour has pledged to change the law to prevent people from becoming trapped in unwanted auto-renew subscriptions.
Businesses would have to offer a default option without automatic renewal under the party’s plans.
Customers would be given a choice to opt in to an automatically renewing contract, rather than having to opt out.
Citizens Advice research found that people in the UK in 2021 spent half a billion pounds on subscriptions that auto-renewed without them realising, and more than £306 million on unused subscriptions.
People are often lured in by a free trial, and get trapped in a subscription when they forget to cancel. The contract may then automatically renew each year without needing their consent, with firms profiting from consumer inertia.
Shadow business secretary Jonathan Reynolds said: “In a cost-of-living crisis it is vital we protect customers and make sure they are getting the best value for money possible.
“Labour will take action to stop companies trapping customers in contracts they no longer want and put power back in customers’ hands.
“All good businesses know the way to get customer loyalty is through good service and value for money, not through customers paying for products they don’t want.”
Labour has turned its focus to living costs in its campaign for England’s May 4 local elections, in which it is hoping to snap up votes as the Tories continue to lag far behind in national polls.
