New laws to make it easier to cancel subscriptions and get refunds

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Emer MoreauBusiness reporter

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The laws will enable people to cancel subscriptions “with the click of a button”.

New laws will make it easier to cancel subscriptions and get refunds for unwanted auto-renewals, the government has said.

A crackdown on “subscription traps” could save the average person nearly £170 a year, according to the Department for Business and Trade (DBT).

Consumers will no longer have to make “endless phone calls” to cancel a subscription, and they will be given a 14-day cooling off period after the end of a trial period, or when an annual subscription automatically renews.

The changes are expected to come into force in spring 2027.

The laws will enable people to cancel subscriptions “with the click of a button”, the DBT said.

Companies will be forced to give clear information upfront to prevent consumers from being “silently rolled onto expensive contracts”, it added.

Firms will also have to give customers reminders when a free or discounted trial is about to end, or when contracts that are a year or longer are about to be renewed.

The 14-day cooling off period will allow people to get a “full or proportionate refund” if they forget to cancel after a free trial, or the subscription auto-renews.

The changes could save the public a total of £400m a year, the DBT said.

Kim Biggs from Lincolnshire told BBC News she has been “caught out” by annual subscription fees that renew automatically.

Kim was notified that her free trial of AVG, the anti-virus software, was about to end. She said trying to cancel the subscription was “exasperating”.

"It took quite a lot of time to wade through all the pages, all the information that was presented when you first clicked onto the ‘unsubscribe’ part on the website.

“Eventually I clicked on the right options to get an online form to request a refund. I completed this but did not receive my refund.”

Kim said the phone number for AVG 's support centre was not easy to find online.

When she did speak to a support agent Kim said she was told “the form that I’d sent in is basically disregarded by them, that you have to speak to them through the support centre to get your refund, which was really annoying”.

“I had to keep repeating that I just wanted a refund, as she was very persistent in pushing the products available, trying to get me to change my mind.”

AVG said the company was “committed to providing customers with clear and transparent subscription controls”.

“Customers can easily cancel trials or subscriptions at any time through their account,” a spokesperson said.

“For auto-renewing subscriptions, a reminder email is sent in advance outlining the renewal date, price, and options to cancel or request a refund.”

‘Nothing more frustrating’

Sue Davies, the head of consumer rights policy at Which?, said subscription traps can “wreak havoc on finances”.

“These new rules will help put consumers in the driving seat with proper transparency and protection,” she said.

Timo Boldt, founder and chief executive of the recipe box subscription firm Gousto welcomed the new rules.

“I’m excited,” he told BBC Radio 4’s Today programme. “I think this is good for customers.”

Gousto was already all about the customer “being in control”, he said.

“Nothing changes for us. That’s exactly how Gousto has been working for the last couple of years.”

Certain memberships for charitable, cultural and heritage organisations will be excluded from the new rules.

The DBT estimates that there are 10 million unwanted, active subscriptions across the UK.

It said that more than 3.5 million people are being “quietly rolled from free or discounted trials into fully costed contracts”, while another 1.3 million are caught out by unexpected auto-renewals.

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