The Albanese Government has announced a crackdown on unfair trading practices, aiming to protect Australians from being ripped off by businesses under the Australian Consumer Law. This initiative targets dodgy tactics that increase the cost of living for consumers and suppliers alike.
From concert tickets and gym memberships to hotel bookings, many Australians have expressed frustration over businesses that employ hidden fees and complicated processes to cancel subscriptions. These practices can lead to inflated costs, further burdening household budgets.
Prime Minister Anthony Albanese highlighted the need for action, stating,
“We’re taking strong action to stop businesses from engaging in dodgy practices that rip consumers off. Hidden fees and traps are putting even more pressure on the cost of living and it needs to stop.”
The Government is addressing a wide range of practices, including so-called ‘subscription traps,’ which make it hard for consumers to cancel subscriptions, ‘drip pricing,’ where additional fees are tacked on throughout a transaction, and deceptive online tactics that create false urgency or hide key information.
Other concerns include dynamic pricing, where prices change mid-transaction, and businesses requiring unnecessary personal information to complete a purchase.
Treasurer Jim Chalmers emphasised the importance of these reforms, saying, “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 to cancel a subscription, hidden fees at different stages of a purchase, or manipulative practices online, we’re going to change the rules.”
Most businesses that operate fairly have little to worry about, Chalmers noted, adding,
“This is about cracking down on dodgy deals to save Australians money.”
In conjunction with this announcement, the Government has released a consultation paper proposing reforms to strengthen consumer protections under the Consumer Guarantees and Supplier Indemnification provisions of the Australian Consumer Law.
The proposed changes include penalties for suppliers that refuse to offer legally required remedies, such as repairs, replacements, or refunds.
Assistant Treasurer and Minister for Financial Services Stephen Jones said the reforms are designed to ensure protections extend across both digital and physical marketplaces.
“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.”
The Government will consult on the design of the reforms before legislating, aiming to finalise the proposal in early 2025. Stakeholder feedback is being welcomed to ensure that the reforms effectively tackle the issues facing consumers and small businesses across Australia.
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