"If It's Half Price, It Must Be Truly Half Price"... UK Cracks Down on Subscription and Discount Tactics

155 Million Active Subscription Accounts in the UK

Estimated 3.07 Trillion Won Spent on Unused Payments

Burnham Points Out, "Signing Up Takes Seconds, Cancelling Is a Maze"

The UK government is launching sweeping regulations targeting hard-to-cancel subscription services and so-called 'fake discounts'.

A clothing store with a discount poster attached, a photo to help understand the article. Photo by AFP Yonhap News

According to Yonhap News on August 10 (local time), Andy Burnham, Prime Minister of the United Kingdom, wrote in an op-ed for The Guardian that he intends to stamp out so-called "rip-off tactics." Prime Minister Burnham pointed out that, "While these issues may seem trivial, in reality they add to the cost of living and erode the expectations of ordinary people."

According to the UK government, there are 155 million subscription accounts in the UK from which money is being withdrawn. Among these, the annual amount paid automatically for services unused by users comes to 1.6 billion pounds (approximately 3.066 trillion won). For example, more than 3.5 million users who only intended to try a service for free or at a discount ended up unknowingly being switched to regular payments at the standard rate. In addition, 1.3 million users had their subscriptions renewed without being notified of the renewal.

Prime Minister Burnham said, "We will make it as easy for consumers to cancel subscriptions as it is to sign up, and companies will not be able to renew subscriptions without prior notification." He added, "Too many companies allow you to sign up in seconds but make leaving almost impossible. It's exhausting."

The new regulations will take effect in January next year. Companies must clearly communicate information when users sign up and provide regular updates about the subscription status. After a trial period ends or a long-term contract is automatically renewed, consumers will have a 14-day cooling-off period. The government estimates that, each time a consumer cancels an unwanted subscription early, they can save an average of 14 pounds per month (about 26,800 won), with total annual savings expected to reach 400 million pounds (approximately 766 billion won).

'Fake discounts' will also be regulated. This aims to stop the practice where sellers first raise prices and then lower them to create the illusion of a bigger discount for the consumer. Display of 'previous price', amount of reduction, and recommended retail price are among the items to be regulated. Prime Minister Burnham stated, "If a product is advertised at half price, it should truly be half price."

Andy Burnham British Prime Minister. Photo by AFP Yonhap News

The government will begin seeking feedback this autumn on whether to add deceptive pricing practices to the list of prohibited acts under the Digital Markets, Competition, and Consumers Act. Once included in the list, regulators can take action without the need to prove individual consumer harm for each case.

The industry is pushing back. The News Media Association (NMA), which includes The Sun, The Times, and The Guardian, expressed disappointment, saying, "The government repeatedly promised sufficient time for implementation, but is now rushing it through." Theo Bamber, CEO of the NMA, argued, "Ultimately, it is consumers who will be hurt, as companies providing services to millions will be forced to redirect resources from improving products to meeting arbitrary new deadlines."

In response, Prime Minister Burnham said, "Not all inconveniences can be solved overnight," but also stated, "If there is a place where the government can save people money, remove unnecessary obstacles, or make something better, then that's what we should do—and that's what I will do."

Prime Minister Burnham, who took office on July 20, has focused his policies on reducing the cost of living. Over the past 16 years, he served as a Member of Parliament and held ministerial posts in the Tony Blair and Gordon Brown administrations. After serving as mayor of Greater Manchester, he returned to Parliament through a by-election last month. This measure is the first in his announced series of 'Everyday Solutions'.

This content was produced with the assistance of AI translation services.