LEGISLATION brought in by UK Prime Minister Andy Burnham to eradicate “subscription traps” and “rip-off discounts” should be adopted in Jersey – but “could go further” to protect Islanders struggling with cost-of-living, a scrutineer has said.
Economics and International Development Scrutiny Panel chair Samantha Gleave said that her panel “very much supports” action to “tackle subscription traps and make sure that consumers are given clearer information upfront, regular reminders and a straightforward way to cancel”.
It comes after the UK government began rolling out a series of measures aimed at clamping down on “deceptive” trading practices earlier this week, including an “easy to exit” rule for more easily cancelling online subscriptions.
As part of the package, companies will be forced to be transparent when contracts auto-renew at higher prices, with Prime Minister Burnham further pledging to take action on tackling “misleading discounts” and “rip-off prices that fleece customers”.
The new rules will come into force in January 2027, having been brought forward after similar plans were announced by Sir Keir Starmer in April.
Deputy Gleave said that Jersey will likely need to follow a “rinse and repeat” approach to the UK measures, to “ensure that services continue to be offered here on the same basis as elsewhere”.
But the scrutiny panel chair argued that the rules could have been even more stringent.
“Ideally, I would actually like to see the UK go further,” said Deputy Gleave. “For example, for me, a free trial should be exactly that: free.
“Consumers should not have to provide credit or debit card details at the outset and then rely on remembering to cancel before a payment is taken.
“At the end of the trial, it should be for the consumer to make an active decision about whether they want to buy the service and provide payment details at that point.”
St Helier South representative also made the case that, for services originating in Jersey, there “may also be greater scope for us to set a higher standard ourselves”.
“It is very easy for small monthly payments to accumulate without people realising just how much they are spending over the course of the year,” she added.
“[So] alongside stronger protections, we also need to make sure that consumers understand the rights they already have – and are given practical information about how to check what subscriptions and recurring payments they are currently signed up to.”
Deputy Gleave, who endorsed the priorities of Value Jersey throughout her election campaign, concluded that “anything we can sensibly do to make life cheaper” in Jersey “is something we should be running towards”.
“Consumer protection is not separate form the cost-of-living debate, it is part of it,” she added.
“People should be able to understand clearly what something will cost, make an active and informed choice, and not be caught out by unnecessary complexity, automatic renewals or barriers to cancelling.”
In a statement provided to the JEP, the Jersey Consumer Council echoed Deputy Gleave’s assessment of the measures as suitable for adoption in Jersey.
“We would welcome any changes that make life fairer for consumers,” a spokesperson for the consumer protection body said.
“Businesses automatically renewing subscriptions without first telling people that they will be doing so can result in bill shock, with surprise payments being deducted that consumers haven’t budgeted for and aren’t expecting.
“These surprise changes – often for services which consumers no longer want, or need – simply put further strain on household finances, at a time when the cost of living remains a big issue for everyone.
“Not only do we believe it is ethical and fair to tell customers before taking a payment, but we also feel that anything which can be done to ease these kinds of unexpected financial burdens on consumers can only be seen as a good thing.”
