Key facts
- Prime Minister Andy Burnham plans to ban fake discounts and simplify subscription cancellations.
- The measures aim to save consumers an estimated £400 million annually.
- Implementation of subscription changes is accelerated to January 2027.
- A consultation on implementing these measures will be launched this autumn.
- The Digital Markets, Competition and Consumer Act of 2024 includes similar provisions.
Prime Minister Andy Burnham has announced a crackdown on 'rip-off' business practices, including banning fake discounts and simplifying subscription cancellations, to help consumers save an estimated £400 million annually. These measures are being fast-tracked by his government to provide relief amid the high cost of living.
The new rules will compel companies to provide clearer up-front information, regular reminders, and an easier exit process for subscription contracts. The government aims to prevent consumers from being unknowingly rolled onto expensive contracts. These initiatives, originally planned under his predecessor Sir Keir Starmer, are now slated for implementation by January 2027, a shift from the previously expected spring timeline.
Burnham also intends to outlaw the use of 'pretend prices', such as misleading 'was' prices or recommended retail prices, to advertise deals. A consultation on implementing these measures will be launched this autumn. While consumer group Which? welcomed the announcement, Shadow Chancellor Mel Stride criticized the plans as 'reheated' and questioned the delay in their implementation.
The Digital Markets, Competition and Consumer Act, passed in 2024, already contains provisions against hidden fees and fake reviews, and facilitates subscription cancellation.