UK to enforce new subscription-cancellation rules from January, says consumer expert
Martin Lewis warned that UK consumers currently lack any cooling-off period for auto-renewing services, but new legislation will take effect on 1 January.
Martin Lewis told listeners that UK subscription services - from Netflix and Spotify to gym memberships - can auto-renew without any cooling-off period or prior warning, leaving consumers vulnerable to unexpected charges. He highlighted that one outlet legal framework offers no right to cancel or be informed before price hikes. Starting 1 January, new consumer-protection regulations will obligate providers to give advance notice of upcoming payments and a six-month reminder of the subscription terms.
The Department for Business and Trade expects the reforms to prevent roughly 10 million unwanted contracts and save the average household about £14 per month. Kate Dearden, Minister for Consumer Protection, and Sue Davies of Which? welcomed the measures as a way to restore control over personal finances amid the cost-of-living crisis. Certain sectors such as utilities, financial services and healthcare will remain exempt.
Why it matters
The rules will stop hidden auto-renewals, helping UK households avoid unexpected charges and save money.
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