The Albanese Government is taking action to stop businesses ripping off Australians by banning unfair trading practices under the Australian Consumer Law.
This is about easing the cost of living and getting a fair go for consumers and suppliers.
From concert tickets to hotel rooms and gym memberships, Australians are fed up with businesses using tricky tactics that make it difficult to end subscriptions or add hidden fees to purchases.
These practices can distort purchasing decisions, or result in additional costs, putting more pressure on the cost of living.
The Government’s actions will address a wide range of practices, including:
- ‘Subscription traps’ that use arduous and confusing steps to make cancelling a subscription difficult.
- ‘Drip pricing’ practices where fees are hidden or added throughout the stages of a purchase.
- Deceptive and manipulative online practices that aim to confuse or overwhelm consumers, omit or hide material information, or create a false sense of urgency or scarcity – this can include warnings that a customer only has limited time to purchase a product.
- Dynamic pricing where a product’s price changes during the transaction process.
- Requiring consumers to set up an account and provide unnecessary information to make an online purchase.
- Where a business makes it difficult for a consumer to contact them when they have a problem with their product or service.
Treasury will consult on the design before the Government legislates a general prohibition on unfair trading practices. This will include specific prohibitions of a range of dodgy practices.
Today the Albanese Government has also released a consultation paper on reforms to strengthen protections for consumers and small businesses under the Consumer Guarantees and Supplier Indemnification provisions of the Australian Consumer Law.
The Government welcomes stakeholder feedback on the proposed reforms, which include introducing penalties for suppliers that refuse to provide consumers with a remedy such as a repair, replacement or refund when required under law.
Currently, it can be difficult for consumers to obtain a remedy, especially when engaging in the digital economy.
These reforms will empower the Australian Competition and Consumer Commission (ACCC) and state and territory consumer protection agencies to issue infringement notices or pursue penalties for breaches of the Consumer Guarantee and Supplier Indemnification provisions of the Australian Consumer Law.
Following consultation, the Government will work with states and territories to settle a final reform proposal in the first half of 2025.
Quotes Attributable to Prime Minister Anthony Albanese:
"We're taking strong action to stop businesses from engaging in dodgy practices that rip consumers off.
"Today's announcement puts businesses engaging in unfair trading practices on notice.
"Hidden fees and traps are putting even more pressure on the cost of living and it needs to stop."
Quotes attributable to Treasurer Jim Chalmers:
“We're taking important steps to ban unfair trading practices and ease the cost of living for Australians.
“Whether it's traps that make it difficult or confusing to cancel a subscription, hidden fees and charges at different stages of a purchase, deceptive or manipulative practices online or making it difficult for people to report problems with their products or services, we're going to change the rules.
“Most businesses do the right thing by Australians and they've got nothing to worry about.
“This is all about cracking down on dodgy deals to save Australians money if we can, and where we can.”
Quotes attributable to Assistant Treasurer and Minister for Financial Services Stephen Jones:
“Consumer protections shouldn't stop at the internet. Whether you are shopping online or at a brick and mortar store, the Albanese Government is protecting Australian consumers.
“This is all about ending the rip offs so people don't fall into subscription traps or added fees when they purchase things like airline or concert tickets.”