A crackdown on ‘subscription traps’ that cost consumers an estimated £1.6billion a year is set to be launched by the government.
The business department said nearly 10 million of 155million subscriptions were unwanted, costing households an average of £14 per month.
It has launched a consultation on plans to make it easier for consumers to cancel these arrangements, which can cover ‘anything from magazines to beauty boxes’, and often come with ‘unclear terms and conditions and complicated cancellation routes’.
Consumers could often become trapped by signing up for a ‘free trial’ or cut-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 government said.
Cancelling can involve long waits on a phone line service which may have restricted hours or other inconvenient processes ‘that can leave consumers feeling trapped’.
Government proposals will aim to make the cancellation and refunds process simpler as well as forcing retailers to be more transparent.
That includes ‘clear websites that signpost them [consumers] directly to the cancellation process’.
Business Secretary Jonathan Reynolds. The Government is set to crack down on ‘subscription traps’ which cost consumers an estimated £1.6billion annually
New plans will make it easier to cancel arrangements (file image)
The government said it would aim to boost the rights of consumers ‘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.’
Tom MacInnes, director of policy at Citizens Advice, said: ‘We’ve been raising the alarm for a long time on subscription traps exploiting consumers.’
‘So we’re pleased to see the Government’s new rules taking up our call for people to be able to exit a subscription as easily as they signed up for it.’
Rocio Concha, director of policy and advocacy at consumer group Which?, said: ‘Subscriptions can be a convenient way for consumers to receive products and services, but in recent years many consumers have been trapped in unwanted subscriptions.
‘It’s encouraging to see the Government press ahead with much-needed laws to tackle this, which will hand consumers far greater control over the subscriptions they take out.’