PM reveals plans to ban ‘tricky tactics’. Online stores, gyms are top targets

Businesses that use deceptive tactics, such as hidden fees and difficult-to-cancel subscriptions, are in the crosshairs of the Albanese Government’s latest consumer protection reforms.

Aiming to ban unfair trading practices under Australian Consumer Law, the government hopes these changes will ease cost-of-living pressures and offer fairer treatment to consumers and suppliers alike.

Treasurer Jim Chalmers said the reforms are crucial in tackling dodgy business tactics. 

“Whether it’s traps that make it confusing to cancel a subscription, hidden fees added throughout a purchase, or manipulative online practices, we’re going to change the rules,” he said.

“Most businesses do the right thing by Australians and have nothing to worry about. This is all about cracking down on unfair deals and saving Australians money.”

The proposed reforms will target several unfair business practices, including:

• Subscription traps: Complex procedures that make cancelling services difficult.
• Drip pricing: Hidden fees added during different stages of a transaction.
• Deceptive online tactics: Methods designed to overwhelm or confuse consumers, often creating false urgency or hiding important information.
• Dynamic pricing: When the price of a product changes during the purchase process.
• Limited consumer support: Businesses that make it hard for customers to resolve product or service issues.

Assistant treasurer Stephen Jones echoed the government’s commitment to stronger consumer protections.

“Whether you’re shopping online or in a physical store, the Albanese Government is committed to ending these rip-offs, so Australians aren’t caught in subscription traps or paying extra fees for things like concert tickets or gym memberships,” he said.

The government has also released a consultation paper on reforms to strengthen consumer guarantees and make obtaining remedies easier, such as refunds or replacements for faulty products.

These changes will empower regulators, including the Australian Competition and Consumer Commission (ACCC), to issue penalties for breaches of consumer laws.

Prime Minister Anthony Albanese reinforced the government’s stance: “Hidden fees and tricky traps are making life harder for Australians, and it needs to stop. This announcement puts businesses on notice—unfair trading practices will no longer be tolerated.”

Consumer advocacy group Choice has praised the move. Rosie Thomas, director of campaigns and communications, said: “This is a day for consumers to celebrate. The proposed ban will protect Australians from unfair business practices like dynamic ticket pricing and hard-to-cancel subscriptions.”

Consultation with stakeholders will occur before the legislation is finalised, with the reforms expected to be settled in the first half of 2025.

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