Retailers could face tougher rules around promotions and “was” prices as Prime Minister Andy Burnham launches a crackdown on misleading discounts and subscription traps.
The government is planning to stamp out pricing tactics that make deals appear better than they are, including artificially inflated previous prices, invented discounts and misleading recommended retail prices.
Ministers will launch a consultation this autumn on whether the practices should be added to those banned under the Digital Markets, Competition and Consumers Act, with the government aiming to introduce changes through secondary legislation.
The development is designed to prevent retailers from raising prices before discounting them, or advertising reductions that give shoppers a false impression of the savings available.
Burnham said that when a product is promoted as half price, consumers should be able to trust that it represents a genuine saving. The measures form the first part of a wider package of “everyday fixes” aimed at easing pressure on household finances.
The government estimates its initial crackdown on unfair business practices could save consumers around £400m a year.
However, the British Retail Consortium played down concerns over promotional practices among its members.
BRC director of business and regulation Tom Ironside said major retailers already comply with promotional rules and ensure the discounts they offer deliver genuine savings for shoppers.
Alongside its plans for retail pricing, the government is accelerating rules designed to tackle so-called subscription traps.
The changes, which will now come into force in January 2027, will require businesses to give customers clearer information when signing up, provide regular reminders and make contracts easier to cancel.
Consumers will also receive a 14-day cooling-off period after a free trial ends or a long-term subscription renews.
Government figures show there are around 155m active subscriptions in the UK, with consumers estimated to spend £1.6bn each year on subscriptions they no longer want. Ministers estimate customers could save an average £14 a month for each unwanted contract they are able to cancel.
Businesses that already make subscriptions straightforward to leave and give customers adequate warning of renewals are expected to face limited changes under the new regime.
The prime minister said the measures were only the start of a broader programme of consumer-focused reforms intended to tackle the cost of living, with further policies set to be unveiled over the coming months.
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