Subscription traps​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ and how to avoid them

I’ve been writing this column for over a decade now and in that time I’ve seen an enormous number of changes. From the way we shop to our online lives, the world is moving at such a fast pace. Progress is great, but sometimes the laws that protect our rights don’t keep up with the changing times.

So here’s some good news! I’ve been chatting with the government and other key organisations recently on how we can plug these gaps, help you save some cash and make sure you don’t get ripped off. Watch this space!

So let’s start off with the government’s latest announcements around subscription traps. A new law to protect us from those contracts that are easy to get in to, yet hard to get out of is being brought in early. So from January 2027 onwards, businesses and organisations will have to treat you fairly, make it easy to cancel contracts and refund you if they’ve charged you without permission.

That six-month streaming service 'gift' that came with your new phone, and the three-month plan with your kettle could see you paying indefinitely for services you don't want (Picture: Adobe)

What is a subscription trap?

Let’s start with the basics. A subscription is any contract that you enter into with a business or organisation where they take a regular payment for goods or services. The ’trap’ part occurs because:

• You don’t realise you are still paying for the service.
• You weren’t clearly told the business was going to renew the subscription.
• You never wanted the service in the first place.
• You had cancelled the service, but the business kept taking money anyway.

What does the new law say about subscription charges?

Here’s my plain English guide to the new rules.

• Each business or organisation has to give you loads more info about the contract, how it works, your rights and how to complain. It must be in plain English too and set out the duration and cost of the contract.
• You’ll get this information to keep – in an email for example – so you can refer back to it if there’s a problem.
• They must tell you how you can cancel – and they must also make this process much easier than it is at the moment. So if you signed up on your phone to a subscription, you shouldn’t have to log on to a laptop to leave - and you won’t have to click through a zillion online Q&As to cancel.
• No more mystery payments! The firm must get your explicit permission before taking extra cash from your account – or debit you for things you haven’t agreed to. Remember, if it can’t prove you said yes, it can’t take your cash!
• You should get the goods or services when you were promised you would them – and the goods and services should be as advertised too.
• When you cancel, you should get any unauthorised payments back.
• And finally, they shouldn’t make the process hard, mislead you about your rights, or hit you with additional charges, like charging you to call a helpline.

What can I do if I’m stuck in a subscription trap now?

We already have several laws that protect our rights when we shop. In order to take money from your account, a business must be able to prove that you have given permission for it to do so. That may include an online form, a signed mandate or even a telephone call. But if it can’t prove that you agreed to the subscription, it must refund you.

Of course, if the business can demonstrate that you’ve been using the subscription, then this won’t succeed! But in most cases, it’ll be obvious that you didn’t realise what was going on because you haven’t received the goods or used the service.

Some businesses that provide subscriptions are based abroad and contacting them can be notoriously difficult. But if they trade in the UK, they must follow our laws.

You can ask your bank or card provider to help you ‘charge back’ any money the business has taken without permission. And they can cancel the regular payment immediately if you give them a call.

Martyn James is a leading consumer rights campaigner, TV and radio broadcaster and journalist, for more from him visit this link