First of PM\u2019s \u2018everyday fixes\u2019 to be banning fake discounts and making it easier to cancel unwanted subscriptions<\/p>\n
Andy Burnham: I\u2019ll end the rip-offs that people hate<\/p>\n
Andy Burnham has promised a series of measures to tackle the cost of living, including a ban on fake discounts and making it easier for people to escape unwanted subscriptions.<\/p>\n
The crackdown on \u201crip-off\u201d business practices is expected to benefit consumers to the tune of \u00a3400m a year and will be the first in a range of \u201ceveryday fixes\u201d to be implemented in the coming months.<\/p>\n
Writing for the Guardian, the prime minister said his government would step in wherever it could as he sought to put the cost of living at the heart of his premiership.<\/p>\n
\u201cWe won\u2019t be able to solve every frustration overnight,\u201d he wrote. \u201cBut where the government can save people money, remove an unnecessary obstacle or simply make something work better, we should and we will.\u201d<\/p>\n
The government will ban misleading pricing practices that retailers use to make discounts appear better than they really are, including fake \u201cwas\u201d prices, invented reductions and misleading recommended retail prices.<\/p>\n
Ministers will consult in the autumn on the precise practices covered and how the ban will work, before introducing the changes through secondary legislation.<\/p>\n
Downing Street hopes the measures can be implemented as soon as possible and does not expect a lengthy parliamentary process.<\/p>\n
The changes are intended to stop retailers inflating the price of an item before cutting it to give shoppers the false impression they are receiving a bigger discount.<\/p>\n
Burnham wrote: \u201cIf something is advertised as half price, it should actually be half price. We\u2019ll make sure that when families snatch a deal, they can be confident they\u2019re actually saving. That\u2019s the least they deserve when budgets are so tight.\u201d<\/p>\n
The government is also speeding up new protections against subscription traps, bringing forward their introduction from next spring to January. The rules will force businesses to provide clearer information when people sign up, regularly remind customers about their subscriptions and make it easier for them to cancel. Customers will also be given a 14-day cooling-off period after a trial ends or a long-term contract renews.<\/p>\n
The average person has about three subscriptions and spends about \u00a3500 a year on them, according to government figures. There are about 155m active subscriptions across the UK, and about \u00a31.6bn a year is spent on unwanted ones.<\/p>\n
Ministers estimate consumers will save an average of \u00a314 a month for each unwanted subscription they are able to leave early.<\/p>\n
\u201cToo many companies want you to sign up in seconds but then make it feel impossible to leave. It\u2019s exhausting,\u201d Burnham wrote.<\/p>\n