Politics

Burnham unveils first ‘everyday fixes’ to curb misleading pricing and subscription traps

New measures banning fake discounts and accelerating subscription cancellation rights are expected to save consumers £400m annually, marking the start of a broader government intervention strategy.

Author
Adrian Cole
Political Correspondent
Published
Draft
Source: The Guardian Politics · original
Politics
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Prime Minister targets ‘rip-off’ business practices in bid to ease cost of living pressure

UK Prime Minister Andy Burnham has announced the initial phase of his “everyday fixes” agenda, introducing strict new rules to combat misleading pricing and subscription traps. The measures, designed to alleviate cost-of-living pressures, include a ban on fake discounts and reforms to simplify the cancellation of unwanted services. Government ministers estimate the combined impact of these interventions will benefit consumers by approximately £400m each year.

The crackdown on pricing transparency will prohibit retailers from using deceptive tactics such as fake “was” prices, invented reductions, and misleading recommended retail prices. These practices, often employed to inflate prices before offering discounts, will be outlawed to ensure shoppers receive genuine savings. Burnham emphasised the necessity of consumer confidence during tight budget periods, stating that if an item is advertised as half price, it must be exactly that.

Subscription protections, previously scheduled for introduction next spring, have been brought forward to January. The new regulations will mandate clearer sign-up information, regular reminders for active subscribers, and streamlined cancellation processes. A key component of the reform is a 14-day cooling-off period following the end of trials or contract renewals, addressing the growing concern of “subscription traps” that make it difficult for customers to exit services.

Data from the government highlights the scale of the issue, with the average person holding about three subscriptions and spending roughly £500 annually. Across the UK’s 155m active subscriptions, approximately £1.6bn is spent on unwanted services. Ministers project that the new cancellation rules will allow households to save an average of £14 per month for each unwanted subscription they are able to terminate early.

The changes will be implemented via secondary legislation following an autumn consultation, with Downing Street anticipating a swift parliamentary process. Burnham has framed these interventions as the first in a series of measures, with “bigger plans” for the longer term yet to be detailed. He has also announced a summer tour of Britain to reconnect with voters, particularly in areas where Labour has lost support, to gather direct feedback on cost-of-living challenges.

Citizens Advice welcomed the announcement but cautioned that the reforms “can’t be the end of the story”. While the prime minister has committed to addressing everyday frustrations, Downing Street has not confirmed whether insights from the upcoming tour will influence subsequent policy adjustments. The government remains focused on demonstrating tangible relief for households as it seeks to rebuild trust through practical governance.

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