PM Targets Subscription Traps and Fake Discounts in Cost of Living Push

The government announced on 9 August 2026 that new rules on subscription contracts will take effect in January 2027, alongside a consultation on banning retailers from using misleading discount tactics. Prime Minister Andy Burnham framed the moves as the first in a series of 'everyday fixes' intended to ease pressure on household budgets.

There are around 155 million active subscriptions in the UK. Consumers are estimated to spend £1.6 billion a year on subscriptions they no longer want, according to figures cited in the government announcement. The new rules aim to cut that cost by saving people an average of £14 a month for every unwanted subscription they cancel.

Subscription contracts have long drawn complaints from consumers who find it difficult to cancel or who are automatically rolled onto higher priced renewals without clear warning. The new rules, brought forward under the DMCCA, aim to address those specific problems.

Under the incoming rules, subscription providers must:

• Clearer upfront terms: Provide clear information about the contract at the point of sign up, including price, renewal terms and how to cancel
• Renewal reminders: Send regular reminders before a subscription renews, giving consumers the opportunity to opt out
• Easy exit: Make cancellation as straightforward as signing up, removing complex multi step processes designed to discourage people from leaving
• 14 day cooling off: Allow a new 14 day cancellation window after a free trial ends or a long term contract auto renews
• Charitable carve outs: Certain cultural and heritage membership organisations such as those preserving historic sites and collections will be exempt from the new requirements

Alongside the subscription changes, the government announced a separate consultation due to launch this autumn into whether misleading pricing tactics should be formally prohibited under the DMCCA.

The government has identified specific practices it wants to address:

Consumer groups have been pressing for action on both fronts for several years. Which? has previously exposed household brands using discount tactics that do not represent genuine savings. Citizens Advice said it had "sounded the alarm" on subscription traps and welcomed the accelerated timeline for action.

• Which?: Called on the government to implement rules swiftly and ensure regulators have the tools to fine businesses that fall short
• Citizens Advice: Welcomed the announcement but said it "can't be the end of the story", noting that 26% of adults have accidentally signed up to a subscription
• Money and Mental Health Policy Institute: Highlighted that people with mental health conditions are particularly vulnerable to misleading pricing and subscription traps, and are three times as likely to be behind on household bills
• Jonathan Reynolds: Business, Innovation, Science and Trade Secretary said the government is "on the side of families working hard to make ends meet"
• Level playing field: The government noted that businesses already operating transparently will benefit from clearer rules that prevent competitors with confusing practices from undercutting them

The Prime Minister described 9 August's announcement as just the start of a programme of practical cost of living interventions. He stated his intention to "pull every single lever we can to provide people with some room to breathe."

Both measures rely on the Digital Markets, Competition and Consumers Act, which received Royal Assent in 2024. The subscription rules are being brought forward under powers already in the Act. Adding misleading pricing to the list of automatically unfair commercial practices would require secondary legislation, which is why a consultation is being launched first.

• DMCCA Part 4: Covers consumer rights, subscription contracts and unfair commercial practices
• Automatically unfair practices: Adding a practice to this list removes the need for regulators to prove intent, making enforcement faster
• Autumn consultation: Will assess fake 'was' prices, invented discounts, and misleading RRPs, the outcome will determine whether new secondary legislation follows
• January 2027 target: Chosen partly because it falls when consumers often start new subscriptions, maximising the immediate benefit of the cooling off period
• Commencement order: The subscription rules require a commencement order to bring relevant DMCCA provisions into force on the target date

Consumer protection law in the UK has historically struggled to keep pace with digital subscription models and online retail pricing tactics. The DMCCA, passed by the previous parliament, provided new powers but many of its provisions have not yet been brought into force. The current government is now activating parts of that Act to deliver visible consumer benefits ahead of further legislation.

Key existing provisions relevant to these announcements:

Consumer protection enforcement in the UK is split across several bodies. The Competition and Markets Authority (CMA) handles cases with the most significant market impact. Trading Standards, operated by local authorities, handles a large proportion of individual enforcement. The Financial Conduct Authority (FCA) covers financial services. For subscription and pricing issues outside financial services, the CMA and Trading Standards are the primary regulators.

• CMA: Competition and Markets Authority leads on large scale enforcement and digital markets regulation
• Trading Standards: Local authority bodies that handle consumer complaints and enforce unfair trading regulations
• Which? role: Which? can bring complaints to the CMA where systemic consumer harm is identified
• Private rights: Consumers can already take individual legal action for breach of contract or misrepresentation in some circumstances
• New consultation: The autumn consultation will need to address which body is responsible for enforcing any new misleading pricing rules and what the penalties will be

The subscription rules, taking effect January 2027, are among the most concrete consumer protection changes announced since the government took office. The misleading discount consultation is a commitment to act, but the rules themselves remain some way off.

For consumers, the subscription changes mean that by early next year, providers will be legally required to make cancellation straightforward, send renewal reminders, and honour a 14 day cooling off window. That covers a wide range of everyday services, from streaming platforms and gym memberships to software and insurance renewals.

The misleading discount consultation will determine whether the DMCCA's enforcement framework is extended to cover fake 'was' prices. That process is consultation, secondary legislation, commencement, means any formal ban is unlikely to be in force before 2027 at the earliest.