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Burnham targets pricing traps
UK Prime Minister Andy Burnham has vowed to outlaw fake discounts and crack down on stealth “subscription traps” as part of a cost-of-living push.
“The Prime Minister has announced that he will be rolling out a series of ‘everyday fixes’ to help people with the cost of living”
The government says the measures will ban retailers from making misleading claims about discounts, including fake reductions and misleading recommended retail prices, and it expects the crackdown on “rip-off” discounting to save British shoppers about £400m per year.
On subscriptions, Burnham said he will accelerate existing plans to make subscriptions easier to cancel, with rules bringing in a 14-day cooling off period so consumers can refund unwanted auto-renewals or roll-on fees.
Downing Street estimated consumers spend about £1.6bn per year on unwanted subscriptions, while the government says ministers expect consumers to save an average of £14 per month thanks to the subscription changes.
Burnham framed the policy as a response to everyday unfairness, saying, “Westminster has got used to telling people that everyday hassles like this are just part of life.”
Implementation timeline and details
The BBC reported that Burnham will bring forward a package of changes announced under his predecessor Sir Keir Starmer to end so-called subscription traps and a crackdown on “pretend prices,” with implementation now set for January 2027.
On subscriptions, the government said businesses will have “to provide clearer up-front information, regular reminders and a much easier exit to contracts” for customers, and the rules will also include a 14-day cooling-off period after a trial ends or a long-term contract renews.
For discounts, Burnham plans to outlaw shops from falsely claiming products previously retailed at much lower prices to advertise supposed deals, which he said “tricks shoppers into thinking they are getting better value.”
The Guardian added that ministers will consult in the autumn on the precise practices covered and how the ban will work, before introducing the changes through secondary legislation.
Shadow chancellor Mel Stride branded the measures “reheated” and said the prime minister “has already run out of ideas.”
Who backs it, who resists
Consumer groups welcomed the crackdown, with Which? head of consumer rights policy Sue Davies saying it was “great news that the government intends to tighten up the law and explicitly ban misleading pricing practices.”
“deeply disappointed that the government has “rushed ahead” with this crackdown”
Citizens Advice chief executive Dame Clare Moriarty said the move to speed up action on subscription traps was welcome, adding, “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.”
The News Media Association, which represents publishers including The Sun, The Times and The Guardian, said it was “deeply disappointed that the government has “rushed ahead” with this crackdown despite providing “repeated assurances about a proper implementation period.”
The British Retail Consortium’s Tom Ironside stressed that member companies comply with regulations and laws related to promotions and ensure consumers receive genuine discounts, while the government’s own estimates put the scale of unwanted spending at about £1.6bn a year.
Burnham’s cost-of-living tour is set to run as Parliament is in recess, and the BBC reported he is embarking on a tour of the UK while Parliament is in recess to deliver “everyday fixes” to give families “room to breathe.”
