New UK Rules Make Subscription Cancellations Easier and Ban Silent Auto-Renewals
The government has announced new rules to crack down on "subscription traps," making it easier to cancel unwanted services, requiring companies to give advance warning before trials end, and introducing a new 14-day cooling-off period, which are all expected to save consumers around £400 million a year.
The measures, which are due to come into force in spring 2027, will require companies to give clear upfront information when signing people up to their services, send reminders before free or discounted trials expire or before contracts of 12 months or more automatically renew, and allow people to cancel online if that was how they originally signed up, ending the need to hunt down hard-to-find phone numbers or wade through confusing cancellation processes.
The new 14-day cooling-off period will apply either after a free or discounted trial ends, or when a subscription auto-renews for a year or more. During this window, consumers will be entitled to a full or proportionate refund if they forgot to cancel in time.
Consumer Protection Minister Kate Dearden said: "There's nothing more frustrating than seeing money you've worked hard for, disappear from your account for a subscription you've forgotten you had. These new rules will put consumers back in control of their money — making subscriptions clearer, fairer and far easier to cancel."
The scale of the problem is significant. There are 155 million active subscriptions held by UK consumers, with nearly 10 million of them believed to be unwanted. Over 3.5 million people are currently being quietly rolled from free or discounted trials into fully paid contracts, while another 1.3 million are caught out by unexpected auto-renewals. The government estimates that the average person could save around £14 a month, totalling nearly £170 a year, per unwanted subscription they manage to cancel.
Sue Davies, head of consumer rights policy at Which?, said the new rules would be "welcome news for those struggling with rising costs.”
“Subscription traps can be costly and wreak havoc on finances that are already under strain from the cost-of-living crisis... These new rules will help put consumers in the driving seat with proper transparency and protection."
Some businesses have welcomed the change. Gousto CEO Timo Boldt told BBC Radio 4's Today programme: "I'm excited. I think this is good for customers." He said Gousto already operated with the customer "being in control" and that "nothing changes for us."
Certain memberships for charitable, cultural and heritage organisations will be exempt from the new rules given their role in preserving access to cultural collections and locations.
