Political Action: Andy Burnham Targets 'Phoney' Discounts and 'Subscription Traps'

Prime Minister Andy Burnham has announced a series of new consumer protection measures, dubbed 'everyday fixes', aimed at helping households save money and ease the ongoing cost of living crisis. These policies, unveiled shortly after his appointment as Prime Minister on July 20, target misleading 'phoney' discounts and the complexities of cancelling subscription deals.

A core element of the new strategy is to combat deceptive pricing. Mr. Burnham stated that if an item is advertised as 'half price', it must genuinely reflect a 50% reduction. This initiative directly addresses public frustration with what he describes as 'rip-off discounts' that have become commonplace. Alongside this, the government is committed to simplifying the process of cancelling subscriptions, ensuring it is as straightforward to leave a service as it is to join.

New regulations are set to come into force from January 2027. These rules will require businesses to provide customers with clearer upfront information regarding contracts, issue regular reminders, and offer easier exit routes from subscription agreements. A significant addition is a 14-day cooling-off period, allowing consumers to cancel after a trial or when a long-term contract renews. This move is particularly pertinent given that households across the UK are estimated to spend £1.6 billion annually on subscriptions they no longer want or use. Certain charitable memberships for cultural and heritage organizations will, however, be exempt from these new rules.

The announcement precedes a consultation scheduled for the autumn, which will delve into pricing practices. This consultation aims to assess whether 'misleading' discounts should be added to the list of prohibited practices under the existing Digital Markets, Competition and Consumers Act.

The new policies have garnered significant support from various government officials and consumer advocacy groups. Jonathan Reynolds, the Business, Innovation, Science and Trade Secretary, emphasized the government's stance 'on the side of families working hard to make ends meet', while ensuring clear and easily followable rules for businesses. Sue Davies MBE, Head of Consumer Rights Policy at Which?, lauded the government's intent to tighten laws against 'dodgy deals' and 'subscription traps', urging swift implementation and tough enforcement, including fines for non-compliance.

Dame Clare Moriarty, Chief Executive of Citizens Advice, highlighted the widespread issue of consumers being 'tricked into paying for products or services they don’t use', a problem Citizens Advice has long campaigned against. She cited findings that over 13 million people (26% of UK adults) accidentally took out a subscription in a single year, welcoming the government's accelerated action.

Helen Undy OBE, CEO of the Money and Mental Health Policy Institute, underscored the particular vulnerability of individuals with mental health problems. She explained that issues like difficulty with concentration, impulsivity, and decision-making can make it harder for them to identify misleading discounts or resist pressure selling tactics. Given that people with mental health problems are three times more likely to be behind on household bills, she stressed the importance of swift government action to help tight budgets. Undy also welcomed the subscription trap protections, noting that symptoms like increased impulsivity and memory problems can lead to unintended sign-ups and forgotten subscriptions. While acknowledging these measures are good news, she suggested that subscription traps and misleading discounts are 'only the tip of the iceberg' regarding unfair practices impacting those struggling with mental health.

Prime Minister Burnham reiterated his commitment to rolling out more 'everyday fixes', expressing hope that these actions will put more money back into people’s pockets and restore faith in politics to improve their daily lives.