Burnham takes on ‘rip-off’ discounts and subscriptions in cost of living push

Andy Burnham has pledged to outlaw deceptive discounts and tighten regulations on sneaky subscriptions to provide short-term relief for Britons grappling with rising costs of living. The Prime Minister is set to launch a cost-of-living tour across the UK, where he will unveil a series of "everyday fixes" aimed at making people feel better off financially.

However, some businesses that depend on subscription models have expressed disappointment, arguing that Burnham's proposed crackdown lacks proper consultation with companies. The government will prohibit retailers from making false claims about the value of discounts, including fake reductions and misleading recommended retail prices.

This move is expected to save British shoppers around £400 million annually. Burnham intends to expedite existing plans to make subscriptions easier to cancel and remind users more frequently about their payment obligations. This policy will grant consumers a 14-day window to refund unwanted auto-renewals or recurring fees, potentially saving them an average of £14 per month.

Brits currently spend approximately £1.6 billion per year on unwanted subscriptions. The News Media Association, representing prominent publishers like The Sun, The Times, and The Guardian, expressed dissatisfaction with the government's premature crackdown, alleging that it disregards the need for a proper implementation period.

They argue that consumers may suffer due to businesses scrambling to adapt to the new regulations, diverting resources from product development. Consumer rights advocate Sue Davies welcomed the government's intent to tighten laws against misleading pricing practices and end subscription traps, urging swift implementation and tough enforcement, including potential fines for non-compliance.

However, Burnham has faced criticism for employing policies previously proposed by his predecessor rather than introducing innovative solutions to the cost of living crisis.