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The government has announced new legislation aimed at simplifying the process for consumers to cancel subscriptions and obtain refunds for unwanted automatic renewals. This initiative targets the issue of “subscription traps” and is anticipated to save individuals around £170 annually, according to the Department for Business and Trade (DBT).
Under the proposed rules, consumers will no longer need to endure repeated phone calls to terminate subscriptions. They will also benefit from a 14-day cooling-off period, which applies after the conclusion of trial periods or when yearly subscriptions are automatically renewed. These measures are scheduled to come into effect in the spring of 2027. The DBT emphasized that cancellations will be made possible “with the click of a button,” enhancing convenience for users.
In addition to making cancellations easier, companies will be required to provide clear information upfront to prevent customers from being transferred “silently” onto costly contracts. Businesses will need to notify consumers as their free or discounted trials come to an end or before contracts that last a year or longer are renewed. This 14-day cooling-off period ensures that customers can receive a “full or proportionate refund” if they miss cancelling either after a trial or during an automatic renewal. The department estimates that these reforms could collectively save the public £400 million each year.
Personal experiences highlight the difficulty many face with subscription cancellations. For example, Kim Biggs from Lincolnshire described her frustrating attempts to cancel an automatically renewing annual subscription for AVG antivirus software. Despite receiving notification about the end of her free trial, she found the cancellation process involved navigating numerous pages and submitting an online refund request form that went unacknowledged. Finding AVG’s support phone number proved difficult, and upon finally reaching an agent, she was told her refund form would be disregarded, with the conversation shifting toward sales pitches instead of resolving her refund request. Sue Davies, head of consumer rights policy at Which?, commented that subscription traps can “wreak havoc on finances” but sees the new laws as a positive step toward giving consumers “proper transparency and protection.” The DBT notes that 10 million unwanted active subscriptions exist in the UK, with over 3.5 million individuals being automatically transitioned from trials to paid contracts and 1.3 million caught unaware by auto-renewals. However, memberships related to certain charitable, cultural, and heritage organizations will not fall under these new rules
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