Burnham Announces Crackdown On Scam Discounts

Andy Burnham is to announce a crackdown on “rip off discounts and subscription traps” to help hard-pressed Brits deal with the cost of living crisis.

The prime minister will unveil a raft of “everyday fixes” to save people money as he tours the country throughout the rest of August.

Burnham said people are “sick and tired” of shops claiming to have slashed their prices when in reality they haven’t.

New measures to make it easier for people to cancel online subscriptions will also be introduced, potentially saving customers across the UK a staggering £1.6 billion.

The PM 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.”

Under the plans, retailers will be banned from claiming prices in their shops have been discounted when they have not been in an attempt to trick customers into thinking they are getting a bargain.

New rules will also come into force in January 2027 forcing companies to provide clearer information on the cost of subscriptions, and making it much easier to exit contracts.

A new 14-day cooling-off period will also let consumers cancel when a trial subscription ends, or long-term contract renews.

Burnham said: “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.”

Sue Davies, head of consumer rights policy at Which?, said: “It’s great news that the government intends to tighten up the law and explicitly ban misleading pricing practices, while putting an end to subscription traps.

“The government must implement these rules swiftly to give consumers much-needed protection against sneaky pricing tactics and hold businesses to account with tough enforcement, including fines, if they fall short.”

Dame Clare Moriarty, chief executive of Citizens Advice, said: “For too long consumers have been tricked into paying for products or services they don’t use – or didn’t even want to begin with – costing millions of pounds each year.

“So we really welcome the government’s move to speed up action on subscription traps and look at banning other tactics firms use to catch consumers out.”

Burnham’s government has already removed VAT from electricity bills, capped bus fares at £2 outside London and slashed business rates on hospitality businesses by 20%.

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