Burnham Vows Crackdown on Rip-Off Business Practices 2026

Daniel Harrolds
Burnham Vows Crackdown on Rip-Off Business Practices
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Andy Burnham has promised a series of measures to tackle the cost of living, including a ban on fake discounts and making it easier for people to escape unwanted subscriptions. This crackdown on rip-off business practices is expected to benefit consumers to the tune of £400m a year and will be the first in a range of “everyday fixes” to be implemented in the coming months.

Writing for the Guardian, the prime minister said his government would step in wherever it could as he sought to put the cost of living at the heart of his premiership. “We won’t be able to solve every frustration overnight,” he wrote. “But where the government can save people money, remove an unnecessary obstacle or simply make something work better, we should and we will.”


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Ban on Fake Discounts and Misleading Pricing

The government will ban misleading pricing practices that retailers use to make discounts appear better than they really are, including fake “was” prices, invented reductions, and misleading recommended retail prices. Ministers will consult in the autumn on the precise practices covered and how the ban will work, before introducing the changes through secondary legislation. Downing Street hopes the measures can be implemented as soon as possible and does not expect a lengthy parliamentary process.

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The changes are intended to stop retailers inflating the price of an item before cutting it to give shoppers the false impression they are receiving a bigger discount. Burnham wrote: “If something is advertised as half price, it should actually be half price. We’ll make sure that when families snatch a deal, they can be confident they’re actually saving. That’s the least they deserve when budgets are so tight.”

Protection Against Subscription Traps

The government is also speeding up new protections against subscription traps, bringing forward their introduction from next spring to January. The rules will force businesses to provide clearer information when people sign up, regularly remind customers about their subscriptions, and make it easier for them to cancel. This is a significant win for consumers who have struggled with hidden auto-renewals and cumbersome cancellation processes.


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How the Crackdown Will Benefit Consumers

These measures are designed to save consumers up to £400 million annually. By eliminating deceptive pricing and simplifying subscription cancellations, the government aims to reduce the financial burden on households. This is part of a broader strategy to address the cost of living crisis, which has been a major concern for many families across the UK.

Measure Impact
Ban on fake discounts Prevents misleading pricing, saving consumers money on purchases
Subscription trap protections Easier cancellation and clearer information, reducing unwanted costs
Faster implementation Benefits delivered sooner, with new rules in place by January

Key Takeaways for Consumers

  • Fake “was” prices and inflated RRP will be banned, ensuring discounts are genuine.
  • Subscription services must provide clearer sign-up information and reminders.
  • Cancellation processes will be simplified, making it easier to exit unwanted subscriptions.
  • The measures are expected to save consumers £400 million per year.
  • Implementation is fast-tracked, with subscription protections arriving by January.

These changes represent a significant step forward in consumer protection. By holding businesses accountable, the government aims to restore trust and fairness in the marketplace. For households struggling with rising costs, these “everyday fixes” offer tangible relief.

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FAQ

What are fake discounts?

Fake discounts are misleading pricing practices where retailers inflate the original price of an item before reducing it, making the discount appear larger than it actually is. The new ban will prohibit such practices, including fake “was” prices and invented reductions.

When will the subscription trap protections take effect?

The subscription trap protections are being fast-tracked and will take effect in January, earlier than originally planned for next spring. This will require businesses to provide clearer information, send regular reminders, and make cancellation easier.

How much will consumers save from these measures?

The crackdown on rip-off business practices is expected to benefit consumers to the tune of £400 million a year, providing significant savings for households amid the cost of living crisis.

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Daniel Harrolds

Author

Daniel Harrolds

With a career spanning four decades, Daniel is almost a library in the field of precious metals investing and Gold IRAs. His insightful strategies and pragmatic results-oriented approach make him a resource in safeguarding wealth, and financial foresight.


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