The government is moving to clamp down on misleading retail discounts and hard-to-cancel subscriptions as the Prime Minister launches what he describes as a programme of “everyday
fixes” aimed at easing pressure on household finances.
Two measures announced on Sunday will target practices that ministers say leave consumers paying more than they realise, including artificial “was” prices, deceptive discounts and subscriptions that continue renewing after customers no longer want them.
The plans are being presented as an early test of the government’s pledge to tackle the routine costs and frustrations of everyday life, rather than relying solely on large-scale economic measures.
Under the proposed changes, retailers could face tighter restrictions on the way they advertise discounts. Ministers are particularly concerned about cases where businesses raise a product’s price before applying a supposed reduction, creating the impression of a bargain when the customer is paying little or no less than before.
Other practices under scrutiny include advertising a product at a discounted price that is effectively the same as its previous selling price, as well as the use of misleading recommended retail prices.
The government says a consultation will begin this autumn on whether such practices should be added to the list of automatically prohibited unfair commercial practices under the Digital Markets, Competition and Consumers Act.
Ministers argue that the change would make enforcement easier and provide businesses with clearer rules, while preventing companies that use aggressive pricing tactics from gaining an advantage over competitors that offer genuine discounts.
The second measure focuses on the growing subscription economy.
New rules due to take effect in January 2027 will require companies to give customers clearer information before they sign up, provide regular reminders about continuing subscriptions and make cancellation significantly easier.
Consumers will also receive a new 14-day cooling-off period after a free or discounted trial ends or an existing long-term contract renews.
The scale of the problem is substantial. The government estimates that the UK has around 155 million active subscriptions, while consumers spend approximately £1.6 billion each year on subscriptions they no longer want.
For an individual household, the government estimates that cancelling an unwanted subscription could save an average of £14 a month.
The reforms are not intended to impose the same burden on businesses that already provide straightforward cancellation procedures and adequate warnings before renewals. Ministers say such companies should benefit from a more consistent regulatory framework and a level playing field.
Some charitable memberships operated by cultural and heritage organisations will be exempt from the subscription provisions because of their role in maintaining access to historic collections, landscapes and cultural institutions.
Prime Minister Andy Burnham said:
“I know people are sick and tired of rip-off discounts and subscription traps. Westminster has got used to telling people that everyday hassles like this are just part of life. I don’t think that’s right, especially when the cost of living continues to weigh heavily on so many people’s lives. I’m determined to pull every single lever we can to provide people with some room to breathe on the cost of living.
We’re putting an end to phoney bargains. If something is advertised as half price, it should actually be half price. We’re also making it as easy to leave a subscription as it is to join.
These are just two of the everyday fixes we’re going to be rolling out – today is just the start. We want to put more money in people’s pockets and give people hope that politics really can work for them and their everyday lives”.
The measures form part of a wider cost-of-living programme that the government says will focus on practical interventions designed to leave households with more disposable income.
They follow the government's first-week measures to cap bus fares and reduce energy costs for millions of households.
The government says further “everyday fixes” will be announced in the coming months, with the broader objective of restoring what ministers describe as fairness to consumers and putting more money back into household budgets.
The approach marks an attempt to frame the cost-of-living debate around the smaller financial pressures that accumulate across household budgets — from transport and energy to retail pricing and recurring digital payments.
For consumers, however, the impact will depend on how quickly the new rules are implemented and how effectively they are enforced. The government is now preparing the regulatory changes that it says will turn its promise of easier, fairer everyday spending into enforceable rights.
Business, Innovation, Science and Trade Secretary Jonathan Reynolds said:
“There’s nothing worse than realising you’ve been fleeced by a dodgy deal, or seen money leaving your account because of a subscription you didn’t want to renew or couldn’t easily cancel.
This Government is on the side of families working hard to make ends meet, while making sure the rules are clear for businesses and easy to follow.
Sue Davies MBE, Head of Consumer Rights Policy at Which?, said:
Which? has repeatedly exposed businesses, including trusted household brands, ripping off customers with dodgy deals that aren’t what they seem - but regulators have often found it too difficult to take action. It’s great news that the government intends to tighten up the law and explicitly ban misleading pricing practices, while putting an end to subscription traps.
The government must implement these rules swiftly to give consumers much-needed protection against sneaky pricing tactics and hold businesses to account with tough enforcement, including fines, if they fall short”.
Dame Clare Moriarty, Chief Executive of Citizens Advice, said:
“For too long consumers have been tricked into paying for products or services they don’t use - or didn’t even want to begin with - costing millions of pounds each year. So we really welcome the government’s move to speed up action on subscription traps and look at banning other tactics firms use to catch consumers out.
At Citizens Advice, we’ve sounded the alarm on this for years, because we know subscription traps and sneaky online practices that hit consumers’ pockets hard are a widespread problem. We previously found that over 13 million people (26% of UK adults) accidentally took out a subscription in a year.
People shouldn’t have to waste their time and effort avoiding dubious online tactics and fixing unwanted purchases and sign-ups. Today’s announcement is an important move, but it can’t be the end of the story. We look forward to seeing the detail in the consultation on deceptive online pricing and how it will ensure consumers are protected and treated fairly”.
Helen Undy OBE, CEO of the Money and Mental Health Policy Institute, said:
“It can be hard for anyone to spot a misleading discount, but this is particularly difficult for people with mental health problems who can struggle with concentration, impulsivity and decision-making, which can make it harder to resist pressure selling tactics and compare prices to get a fair deal.
This group is already at the sharp end of the cost of living crisis - people with mental health problems are three times as likely to currently be behind on some or all household bills - so it’s good news that the government is taking action to help tight budgets go further, and it’s important that it happens quickly.
It’s also encouraging to see that the subscription trap protections will be brought forward. We know that the symptoms of mental health problems such as increased impulsivity and memory problems, can contribute to someone signing up without realising and forgetting about a subscription. We’ve long argued that it should be as easy to cancel a subscription as it is to sign up - and as ever the proof will be in how companies put this into practice.
Today’s announcement is good news - however, subscription traps and misleading discounts are only the tip of the iceberg when it comes to unfair practices that make it harder to get a fair deal when you’re struggling with your mental health. We look forward to working with the government to see what further action can be taken in future”. Photo by [2], Wikimedia commons.
