Consumer harm from subscription traps ‘worsening amid fix failure’

Consumer harm from subscription traps is worsening and the Government’s current plans to fix the problem will fail, Citizens Advice has warned.

More than 13 million people – or 26% of UK adults – have accidentally taken out a subscription in the last 12 months for services ranging from fitness apps to food delivery services and repeat pet food purchases to magazine subscriptions, research by the charity suggests.

It estimates unused subscriptions have cost consumers £688 million in the last year, up by £382 million since it last looked into the problem at the end of 2022.

Of those who ended up with an accidental subscription, 40% said it renewed automatically without their knowledge.

This was followed by 39% who took out a subscription for a free trial but forgot to cancel it later, while 24% thought they were making a one-off purchase.

Citizens Advice warned that the failure to tackle subscription traps was not only a risk to consumers, who could end up parting with more money than they originally bargained for or could afford, but also harming businesses.

More than half of people (54%) said they had decided not to sign up for a subscription due to concerns about how difficult it would be to cancel.

The charity found 74% of UK adults supported a ban on automatic subscription renewals where consumers had not actively agreed to it.

It is calling on the Government to clamp down on the practice in the upcoming Digital Markets, Competition and Consumer Bill.

It wants to see consumers given the choice over whether their subscriptions are subject to automatic renewal, and over whether they want to continue to use a subscription service at the end of a free trial.

Citizens Advice chief executive Dame Clare Moriarty said: “With budgets increasingly squeezed and living costs often exceeding the amount people have coming in each month, it’s vital consumers feel in control of their spending.

“Companies relying on people forgetting to cancel at the end of a free trial is an unacceptable business model that exploits busy, cash-strapped consumers.

“While the Government has acknowledged subscription traps are a problem that need to be fixed, the plans laid out in the upcoming Consumer Bill risk failing to fix them.

“We need to see the root cause of subscription traps tackled head on. Consumers should be offered a choice over whether their subscriptions auto-renew and whether they want to continue after a free trial.”

A Department for Business and Trade spokesman said: “We know it’s frustrating to find out you’re still paying for something you weren’t expecting.

“That is why we are delivering legislation this year that will ensure consumers have clear information about their subscription terms and can exit unwanted subscriptions easily, giving them peace of mind and greater control of their cash.”

Opinium surveyed 3,000 UK adults between January 26 and February 1.