UK government targets fake discounts and subscription traps

Britain's new Prime Minister, Andy Burnham, has announced a crackdown on misleading product discounts and difficult-to-cancel subscription contracts, framing the measures as part of a wider effort to ease pressure on household finances.

The government will launch a consultation on retail pricing practices, examining whether tactics such as fake previous prices, invented discounts, and misleading recommended retail prices should be banned under existing consumer protection legislation.

The move comes as Burnham seeks to demonstrate decisive action on living standards after a period of political instability that saw seven prime ministers in a decade. Since taking office on July 20, he has already removed a tax on domestic electricity bills, capped bus fares, and lowered business rates for pubs, clubs, and live music venues.

The British Retail Consortium, which represents major retailers including Tesco, Sainsbury's, and Marks & Spencer, downplayed the scale of the problem. Its director of business and regulation, Tom Ironside, said members adhere to all rules on promotions and ensure consumers benefit from genuine savings.

On subscriptions, new rules due to take effect from January 2027 will require businesses to provide clearer up-front information, send regular reminders, and offer a much easier exit from contracts. A new 14-day cooling-off period will allow consumers to cancel after a trial or long-term contract renews.

"Today is just the start," Burnham said, promising further measures in the coming months.