Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

New law to stop people accidentally signing up to unwanted monthly subscriptions

The Chancellor will unveil plans in the Budget

Jon Stone
Political Correspondent
Saturday 04 March 2017 01:09 GMT
Comments
Amazon Prime is one service that renews automatically after a free trial
Amazon Prime is one service that renews automatically after a free trial (Sean Gallup/Getty Images)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The Government is expected to change the law in a bid to stop consumers accidentally signing up to recurring monthly subscriptions.

Research by Citizens Advice estimates that around two million consumers every year have problems cancelling subscriptions.

Additionally, over 40 per cent of British people are paying for a subscription that they do not use.

Now the Government is to consult on a plan that would require companies to properly notify customers when they are about to take payment for subscriptions.

Amazon’s Prime service automatically enrols people who take free trials for a whole year’s £79 payment if they do not cancel within the trial period.

In March 2015 the Advertising Standards Authority banned Amazon from using direct mail to offer “free trials” after it found the shopping giant was misleading consumers about the cost of the service.

Apple Music, Spotify, and Netflix are also examples of services that renew automatically after a free trial.

Some companies already provide notifications for consumers when they are about to take payments

The announcement of plans to curb the practice are expected to be laid out by the Chancellor Philip Hammond in his Budget on Wednesday.

The Treasury said the Government would “swiftly develop options to stop people paying unexpected automatic fees for unwanted subscriptions”.

The Chancellor is also expected to announce that he will “examine a range of options” to shorten and simplify the small print in online terms and conditions.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in