Today Labour has announced plans to crack down on rip-off
subscription traps, that trap people into subscriptions they no
longer want. Labour will legislate to ensure customers must ‘opt
in’ to rather than ‘opt out’ of subscriptions that automatically
renew.
Labour's plans will end automatic renewal
as the default option, ensuring customers
are offered an alternative. Instead, businesses will
have to offer customers a default option without automatic
renewal, with the option for customers to select automatic
renewal if they prefer.
At present consumers only need to be informed about their
continued subscription, not given a genuine choice. This
means they can end up trapped into contracts they no longer
want or use. Citizen’s Advice estimate £306 million per year
is spent in the UK on unwanted subscriptions.
The announcement comes as Labour unveil their plans to help
families tackle the cost of living crisis including a freeze on
council tax for working people, immediate action on childcare and
a long-term plan to lower energy bills. Earlier this week,
also announced a new plan
to reverse 13 years of decline and revitalise local high streets,
with policies to cut business rates, cut energy bills, stamp out
late payments, revamp empty shops and tackle anti-social
behaviour.
, Shadow Business
Secretary, launching Stoke’s local election campaign,
said,
“In a cost of living crisis it is vital we protect customers and
make sure they are getting the best value for money possible.
Labour will take action to stop companies trapping customers in
contracts they no longer want and put power back in customers
hands.
“All good businesses know the way to get customer loyalty is
through good service and value for money, not through customers
paying for products they don’t want.
“A Labour government would take action on the cost
of living crisis, freezing council tax this year, lowering energy
bills for good and standing up for consumers.”
Ends
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