UK PM Burnham vows to end ‘subscription traps’ amid cost-of-living crisis
New rules will force businesses to give customers clearer upfront information, regular reminders and an easier way to exit contracts.
British Prime Minister Andy Burnham has pledged to combat the challenges posed by difficult-to-cancel subscriptions and deceptive discount offers as part of his strategy to address the cost-of-living crisis, his office announced on Sunday. The decision came shortly after Burnham returned from a vacation and commenced his nationwide tour to discuss financial pressures with citizens.
In a statement, Burnham expressed frustration over the prevalence of rip-off discounts and subscriptions that are challenging to terminate or automatically renew at higher costs. He affirmed that his administration would streamline the process of exiting subscriptions, making it as simple as joining one.
According to Downing Street, British consumers are currently spending approximately £1.6 billion annually on subscriptions they do not desire. To tackle this issue, new regulations will be implemented in January, compelling businesses to provide customers with clearer upfront information, regular reminders, and straightforward exit options for contracts.
Additionally, a 14-day cooling-off period will be introduced, enabling consumers to cancel subscriptions after a trial or a contract renewal. While the government did not specify how these measures would be enforced, Burnham assured that his government would take action.
Burnham, who has spent nearly a decade as a regional mayor in northern England, emphasized his intention to shift politics beyond Westminster. During his cost-of-living tour, which will traverse all regions of the United Kingdom, Burnham aims to engage with individuals across the country and inquire about what would genuinely improve their lives.
Upon assuming office, Burnham committed to formulating a ten-year plan for the nation, with initial announcements including a tax reduction on energy bills exacerbated by the US-Iran war, a cap on bus ticket prices, and a reduction in business rates for pubs. Both opposition parties, both from the right and the left, have criticized these measures, deeming them insufficient.
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