Brits could save £168 a year on unwanted subscriptions under new crackdown

Consumers are set to find it easier to cancel and get refunds for unwanted subscriptions in a fresh crackdown on unscrupulous retailers. Families are currently estimated to be squandering £1.6 billion annually on unwanted subscriptions due to unclear terms and conditions and complex cancellation procedures, according to the Department of Business and Trade (DBT).

This means they could potentially save £14 per month for each unwanted subscription they manage to exit sooner. Ministers have unveiled new proposals aimed at halting the exploitation by intricate websites and restrictive call centres that fleece customers with "subscription traps".

These occur when consumers are duped into signing up for a subscription via a "free trial" or discounted offer. Should the customer fail to cancel the trial within a specified period, they often find themselves automatically enrolled in an expensive subscription payment scheme.

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Subscriptions can range from magazines to beauty boxes to pet treatments, many featuring convoluted or inconvenient cancellation methods such as phone lines with lengthy waits and limited opening times, which can make consumers feel ensnared.

The DBT has now initiated a consultation on measures to streamline the refund and cancellation process, reports the Mirror.

Tom MacInnes, director of policy at Citizens Advice, expressed approval of the new governmental measures against exploitative subscription traps, stating: "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.

"Subscription traps are just one way we're seeing online sales trick people into parting with their money. We hope the Government continues to crack down on these online sales tactics, which are designed to catch shoppers out.."

Rocio Concha, director of policy and advocacy at Which?, also weighed in, commenting: "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."

Adding to the conversation, Business Secretary Jonathan Reynolds remarked on the steps being taken to protect consumers from financial drains due to deceptive subscriptions.

He said: "Everyone hates seeing money leave their account for a subscription they thought they'd cancelled, or a trial that unexpectedly gets extended.

"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."