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 pledged on Sunday to curb difficult-to-cancel subscriptions and misleading low-price offers as part of efforts to address the cost-of-living crisis, according to Downing Street. The announcement follows the Labour leader's return from vacation and commencement of a nationwide tour to discuss financial hardships with citizens.
Burnham emphasized that people are "sick and tired of rip-off discounts and subscription traps," where it's tough to exit contracts or costs rise unexpectedly. His government aims to make cancelling subscriptions as simple as signing up. Currently, British consumers are estimated to spend £1.6 billion annually on unwanted subscriptions, the government stated.
The new regulations, set to take effect in January, will require businesses to provide clearer upfront information, regular reminders, and simplified exit procedures. A 14-day cooling-off period will be introduced for trial or renewed contracts. Burnham also vowed to address deceptive discount claims based on exaggerated full-price prices.
As the first Labour leader from outside Westminster, Burnham has prioritized touring the UK's regions, including economically struggling areas like Port Talbot in Wales. During his tour, Burnham will ask citizens what truly improves their lives. The prime minister's initial initiatives include energy bill relief, bus fare caps, and reduced business rates for pubs. However, opposition parties have accused his measures of falling short.
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