Newcastle Labour has welcomed new measures announced by Prime Minister Andy Burnham to protect households from misleading discounts and unwanted subscriptions, as part of a series of ‘everyday fixes’ to help with the cost of living.
The Labour Government will crack down on retailers using misleading pricing practices to make discounts appear better than they really are.
The new rules will target businesses that artificially increase prices before advertising supposedly large discounts, as well as cases where a ‘discounted’ price is effectively the same as customers were previously paying.
The Government will also tackle subscription traps, making it easier for people to cancel unwanted contracts and protecting customers from unexpected renewals.
From January 2027, businesses will have to provide clearer information when customers sign up, send regular reminders and make subscriptions easier to cancel. Consumers will also benefit from a new 14-day cooling-off period after a trial or long-term contract renews.
There are around 155 million active subscriptions across the UK, with consumers estimated to spend £1.6 billion every year on subscriptions they no longer want. Cancelling an unwanted subscription could save an average of £14 a month.
Prime Minister Andy Burnham said:
“We’re putting an end to phoney bargains. If something is advertised as half price, it should actually be half price. We’re also making it as easy to leave a subscription as it is to join.
“These are just two of the everyday fixes we’re going to be rolling out – today is just the start. We want to put more money in people’s pockets and give people hope that politics really can work for them and their everyday lives.”
Leader of Newcastle Labour Group, Cllr Ged Bell, said:
“People across Newcastle work hard for their money and deserve to know that the deals they are offered are genuine and that they won’t be trapped into paying for subscriptions they no longer want.
“These are practical changes that can make a real difference to household budgets. This is what a Labour Government should be about – standing up for consumers, tackling unfair practices and making everyday life easier for working people.”