The government is to consult on plans to ban retailers from using misleading discount claims, including fake “was” prices and invented savings, as part of a package of measures aimed at easing cost-of-living pressures.
A consultation launching this autumn will consider whether practices such as artificially inflating prices before applying a discount, advertising products at a “sale” price that is no lower than the previous price, and using misleading recommended retail prices (RRPs) should be explicitly banned under the Digital Markets, Competition and Consumers Act (DMCCA).
The government said shoppers had increasingly complained about retailers creating a false sense of value by raising prices only to immediately advertise a discount, making the saving appear greater than it really is.
Adding these practices to the list of banned unfair commercial practices would make it easier for enforcement authorities to take action, while giving businesses clearer rules to follow.
Prime minister Andy Burnham said: “We’re putting an end to phoney bargains. If something is advertised as half price, it should actually be half price.”
The plans form part of a series of “everyday fixes” announced by the prime minister, aimed at putting more money into consumers’ pockets and making everyday spending fairer.
The government is also introducing new rules to tackle subscription traps, which will come into force in January 2027.
Under the new rules, businesses will have to provide clearer information upfront, send regular reminders and make it easier for customers to cancel. A new 14-day cooling-off period will allow consumers to cancel after a trial or when a long-term contract renews.
The government said there are around 155 million active subscriptions in the UK, with consumers estimated to spend £1.6 billion a year on subscriptions they do not want.
It estimates that the changes could save consumers an average of £14 a month for every unwanted subscription cancelled.
Businesses that already provide clear renewal notices and straightforward cancellation processes will see little change, the government said, while benefiting from a more level playing field.
Certain charitable memberships for cultural and heritage organisations will be excluded from the subscription rules.
Business, innovation, science and trade secretary Jonathan Reynolds said the measures would ensure rules were “clear for businesses and easy to follow”, while protecting consumers from misleading deals and unwanted renewals.
“There’s nothing worse than realising you’ve been fleeced by a dodgy deal, or seen money leaving your account because of a subscription you didn’t want to renew or couldn’t easily cancel,” he said.
“This government is on the side of families working hard to make ends meet, while making sure the rules are clear for businesses and easy to follow.”
Consumer groups welcomed the proposals.
Sue Davies, head of consumer rights policy at Which?, said the organisation had repeatedly exposed “dodgy deals” but regulators had often found it difficult to take action.
“The government must implement these rules swiftly to give consumers much-needed protection against sneaky pricing tactics and hold businesses to account with tough enforcement, including fines, if they fall short,” she urged.
Citizens Advice chief executive Dame Clare Moriarty said subscription traps and other “sneaky online practices” were a widespread problem. The organisation previously found that more than 13 million people, or 26 per cent of UK adults, had accidentally taken out a subscription in a year.