The Prime Minister has announced a series of 'everyday fixes' to help tackle the cost of living.
Retailers will be banned from making misleading claims to customers about discounts. This means no more inflating prices to give a false sense of value, such as increasing them only to then immediately advertise ‘discounts’ to make savings look larger than they really are.
There are also plans to put an end to subscription traps, where contracts are automatically renewed at a higher cost and people find it hard to cancel their subscriptions. The changes will mean businesses will need to provide clearer up-front information, regular reminders and an exit to contracts. A new 14-day cooling-off period will also let consumers cancel after a trial or long-term contract renews.
The plans were previously announced by Sir Keir Starmer in April, but are now being brought forward.
Prime Minister Andy Burnham said: "I know people are sick and tired of rip-off discounts and subscription traps. Westminster has got used to telling people that everyday hassles like this are just part of life. I don’t think that’s right, especially when the cost of living continues to weigh heavily on so many people’s lives. I’m determined to pull every single lever we can to provide people with some room to breathe on the cost of living.
"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."
Business, Innovation, Science and Trade Secretary Jonathan Reynolds said: "There’s nothing worse than realising you’ve been fleeced by a dodgy deal, or seen money leaving your account because of a subscription you didn’t want to renew or couldn’t easily cancel.
"This Government is on the side of families working hard to make ends meet, while making sure the rules are clear for businesses and easy to follow."
