Businesses will also need to provide clearer upfront information, regular reminders and make it easier for consumers to exit contracts. 

As part of the changes, set to come into force in January 2027, the government will also introduce a 14-day ‘cooling-off period’ after a trial or long-term contract renews, during which time consumers will be able to cancel.

The government said certain charitable memberships for cultural and heritage organisations would be excluded from the new rules.

The prime minister announced the plans today ( 10^th August) as part of efforts to help people with the cost of living.

Another measure will prevent retailers from making misleading claims that products previously retailed at higher prices in order to advertise lower sale prices.

Burnham said: “I’m determined to pull every single lever we can to provide people with some room to breathe on the cost of living.”

Research from Citizens Advice previously found that over 13 million people accidentally took out a subscription in a year, according to chief executive Clare Moriarty. 

Moriarty 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.”

“People shouldn’t have to waste their time and effort avoiding dubious online tactics and fixing unwanted purchases and sign-ups. Today’s announcement is an important move, but it can’t be the end of the story. We look forward to seeing the detail in the consultation on deceptive online pricing and how it will ensure consumers are protected and treated fairly.”