The UK government has launched a consultation on measures to make it easier for customers to obtain refunds or cancel unwanted subscriptions.

Consumers are frequently misled into signing up for subscriptions through “free trials” or reduced-price offers, known as subscription traps. In some instances, if the customer does not cancel the trial within a set period, they are automatically transferred to a subscription payment plan.

The government stated that consumers are spending billions of pounds each year on unwanted subscriptions due to unclear terms and conditions and complicated cancellation routes.

Around 10 million of the 155 million active subscriptions in the UK are unwanted, which the government estimates costs consumers £1.6 billion annually.

Many subscriptions have complicated or inconvenient cancellation processes, such as phone lines with restrictive opening hours or long wait times, which the government said can leave customers feeling trapped.

The government estimates that individuals could save an average of £14 per month for each unwanted subscription they are able to cancel.

The consultation will set out proposals to simplify the refund and cancellation processes, requiring retailers to provide greater transparency on their subscription programmes. The government aims to balance consumer rights without placing unnecessary burdens on businesses.

“Everyone hates seeing money leave their account for a subscription they thought they’d cancelled, or a trial that unexpectedly gets extended,” said Business Secretary Jonathan Reynolds. “We’re looking to hear from as many businesses, consumer groups, and other interested parties as possible to allow us to set fair regulations that stop this corporate abuse of power whilst retaining the benefits of subscriptions for consumers and businesses.”

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