Australians deserve markets that are fair, transparent and competitive. Yet too often, consumers are being steered into decisions they didn't intend to make, trapped in subscriptions that are hard to cancel or hit with hidden fees at the last click. These are part of a growing pattern of unfair trading practices that distort choice, erode trust and tilt the playing field against honest businesses.
That's why the Albanese government, with support from states and territories, is introducing a ban on unfair trading practices. This reform will outlaw manipulative tactics such as subscription traps and drip pricing, strengthen consumer guarantees and ensure businesses compete on clarity, not confusion.
The way choices are presented matters. Every button, prompt and default setting can influence behaviour. Some firms use this power responsibly. Others use it to frustrate consumers, burying key terms in fine print, making cancellation harder than sign‑up or hiding unavoidable fees until the last step.
Research shows these tactics exploit predictable blind spots: limited attention, fatigue and optimism bias. Australians know the feeling, signing up for a free trial only to be slugged with expensive charges, or spending longer trying to cancel a gym membership than it takes to do a Zumba class. These practices aren't just annoying; they're deliberate strategies.
Take subscription traps. Businesses design sign‑up flows to be quick and easy, but sometimes make leaving slow, confusing or emotionally loaded. Some require phone calls during business hours. Others hide cancellation links behind multiple screens or use messages to guilt consumers into staying. A survey found 3 in 4 Australians with subscriptions had a negative experience trying to cancel. One in 10 gave up altogether and kept paying for something they no longer wanted. The Consumer Policy Research Centre estimates that subscription traps are costing Australians $46 million a year.
Drip pricing is another common trick. In one case, a concert ticket advertised at $89 ended up costing $129 once 'handling' and 'guarantee' fees were added. In another, a home internet plan didn't look so cheap when a $79 set‑up fee surfaced late in the sign‑up process. These hidden charges waste time, inflate costs and make honest businesses look expensive by comparison.
Markets run on trust. When people feel misled, confidence erodes, not just in individual firms, but in the system as a whole. And when opacity becomes a competitive advantage, businesses that play fair are forced to choose between losing customers or adopting the same tricks.
Our reforms will restore fairness and level the playing field. Businesses will be required to disclose key subscription terms upfront, send timely reminders and make cancellation as easy as sign‑up. Mandatory fees must be shown clearly at the start of a transaction, not buried at the end. We're also toughening consumer guarantee laws.
When products fail, Australians should get the refunds, repairs or replacements they're entitled to. Under the changes, businesses that don't comply will face civil penalties, and regulators will have stronger powers. Manufacturers will be required to indemnify suppliers for the cost of providing remedies, so small businesses aren't left out of pocket for doing the right thing.
This is about more than dollars and cents. It's about the culture of our markets.
Australians should be able to trust that prices are what they seem, that leaving a service is as easy as joining, and that design supports intention rather than undermining it. When clarity becomes the norm, trust grows and consumers win.
