Sweeping UK streaming law is coming into effect this January
A new law aimed at streaming services will come into effect early next year which could help users cancel unwanted subscriptions.
This will impact millions of people in the UK as the British government has approved legislation that will force streaming platforms to change how they handle recurring payments.
It will target subscription services that automatically renew, quietly move customers onto more expensive plans or make it difficult to cancel.
For anyone paying for streaming, digital storage, fitness memberships or other recurring services, the new rules are designed to make it harder to get caught paying for something they no longer want.
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The legislation is part of the UK’s Digital Markets, Competition and Consumers Act 2024, with the government now expecting the subscription protections to come into force early 2027.
Under the new rules, companies will face stronger requirements to explain subscription terms before customers sign up, remind them about certain upcoming payments and provide straightforward ways to cancel.
One of the central changes concerns free trials and discounted introductory offers, where companies will have to remind customers when eligible offers are approaching their end in order to help prevent people from being unexpectedly moved onto full-price subscriptions.
Streaming services will introduce a cooling-off period
As part of these new laws, a 14-day cooling-off period will also be introduced in certain circumstances, including when a free or discounted trial ends or a qualifying contract renews for 12 months or longer.
A cooling-off period would give eligible customers an opportunity to reconsider their subscription without being locked into the payment in the same way as before.
This will be particularly helpful for consumers as automatic payments can be easy to overlook, especially if several services charge different amounts at different times of the month.
The UK government has stated that the average consumer could save approximately £14 ($18.70) a month for every unwanted subscription they cancel.
Sue Davies, who is the head of Consumer Rights Policy at Which?, said: “Subscription traps can be costly and wreak havoc on finances that are already under strain from the cost-of-living crisis.
“The strengthening of subscription laws will be welcome news for those struggling with rising costs. These new rules will help put consumers in the driving seat with proper transparency and protection.”
These new laws will only come into effect for customers in the UK, with American consumers not currently protected under the same cancellation regulations.