Subscription traps: New rules will make it easier to cancel and save money

You sign up for something quickly: a free trial, a cheaper first month or an offer that feels too good to miss. You think, I’ll cancel it later if I don’t use it. Then you forget, or cancelling turns out to be much harder than signing up. Weeks or months later, you notice that you’ve been paying for something you barely use, or did not realise had automatically renewed.

There are around 155 million active subscriptions in the UK, and consumers are estimated to spend £1.6 billion a year on subscriptions they do not want. Cancelling just one unwanted subscription could save an average of £14 a month, or nearly £170 a year, according to the government.

New protections under the Digital Markets, Competition and Consumers Act 2024 are designed to tackle these subscription traps. The government has now brought forward their introduction, and the rules are expected to take effect in January 2027.

You’ll see clearer information before signing up

You should not have to search through pages of terms and conditions to understand what a subscription will cost.

Businesses covered by the new rules will have to provide clear information before you subscribe, including:

• How much you will pay
• When payments will begin
• How frequently you will be charged
• Whether the subscription will renew automatically
• How to cancel
• What cooling-off rights you have

This should make it easier to compare offers and reduce the risk of agreeing to a subscription without understanding the real cost.

You’ll receive reminders before important renewals

Free and discounted trials often rely on customers forgetting when the introductory period ends.

Under the new rules, businesses will have to send reminders before:

• A free or discounted trial ends
• A subscription renews for another 12 months or longer
• Certain other renewal payments become due

The reminder should give you enough time to decide whether you want to continue and explain how to cancel before another payment is taken.

You’ll get an extra 14-day cooling-off period

One of the most important changes is a new 14-day renewal cooling-off period.

This will apply after:

• A free or discounted trial ends and the paid subscription begins
• A contract renews for another 12 months or longer

If you cancel during this period, you should be entitled to a full or proportionate refund, depending on whether, and how much you have already used the service. This is in addition to the initial cooling-off rights that apply when many subscriptions are first taken out.

It should be much easier to cancel

If you can subscribe online, you should also be able to cancel online. Businesses will have to provide a straightforward way to end a subscription, rather than making you search through menus, wait in a long phone queue or speak to several retention agents. Companies should also acknowledge your cancellation and tell you when the contract will end. If a business makes cancelling deliberately confusing or puts unreasonable barriers in your way, keep screenshots and copies of any messages. They could help if you later need to dispute a payment.

What the changes could mean for your money

The government estimates that the reforms could save consumers around £400 million a year.

You should be less likely to:

• Forget that a trial is ending
• Be surprised by an automatic renewal
• Continue paying for a service you no longer use
• Become trapped in a subscription because cancelling is too difficult

The changes should also make it easier to understand what you are agreeing to before any money leaves your account.

The new protections do not apply yet

The new subscription rules are expected to come into force in January 2027. Until then, businesses are not required to follow the new regime. However, you may already have rights under existing consumer law. Businesses must not mislead you, hide important information or use unfair contract terms. You may also have cancellation rights for purchases made online, over the phone or away from business premises.

Some subscriptions and memberships will be excluded from the new regime, including certain charitable, cultural and heritage memberships. Other regulated services may also be covered by separate consumer protection rules.

What to do if you’re caught in a subscription trap

Don’t wait for the new rules if you are already paying for something you don’t want.

You should:

• Check your bank and card statements for recurring payments
• Review the subscription’s cancellation terms
• Cancel through your online account, if that option is available
• Contact the company in writing and keep a copy
• Save screenshots of any unclear instructions or failed cancellation attempts
• Ask for a refund if you were misled or charged after cancelling
• Contact your bank or card provider if the company continues taking payments

Stopping a recurring card payment does not necessarily end the underlying contract, so you should also tell the business clearly that you want to cancel. If the company refuses to help or continues charging you, you can raise a complaint and use Resolver to keep a record of your case

Stay alert, even after the rules change

The new protections should make subscriptions clearer and easier to manage, but it will still be worth checking what you are signing up for.

Before starting a trial or introductory offer:

• Check the price after the offer ends
• Set a reminder in your calendar
• Read the cancellation terms
• Act promptly when a renewal reminder arrives
• Cancel as soon as you decide that you no longer want the service

Subscription traps are not disappearing overnight. But from January 2027, businesses should have to work harder to earn your continued custom, and you should not have to work so hard to leave.

If you have any thoughts on this topic, or any other consumer issues you would like us to cover, feel free to get in touch with us at support@resolver.co.uk 

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