The Albanese Labor Government is delivering on our commitment to take on dodgy business tactics head-on, banning unfair trading practices that cost Australians time and money.
Following agreement by the States and Territories, the Albanese Labor Government can move ahead with banning unfair trading practices, like subscription traps that make it almost impossible to cancel, and strengthen protections against hidden fees that only appear at the checkout. Australians have had enough of signing up for a free trial only to be hit with surprise charges, or finding out the real cost of a purchase at the very last click.
Under these reforms, businesses will have to play fair. They'll be required to disclose key information before signing customers up for a subscription, notify customers before a free trial ends, and remove unreasonable barriers to cancellation. We're also strengthening protections on drip pricing by forcing businesses to show mandatory transaction fees prominently and upfront, so Australians know the real price before they buy.
This is about putting an end to sneaky tactics that distort consumer choice and drive-up costs. The new laws will include a general prohibition on practices that manipulate consumer decision making and cause harm, while targeting specific problems like subscription traps and hidden fees. These changes will deliver economy-wide protections, promote competition and help households keep more money in their pockets.
We're also strengthening the consumer guarantees and supplier indemnification framework so that when products or services fail, Australians get the refunds, repairs or replacements they're entitled to. Businesses that don't comply will face tough civil penalties, and regulators will have expanded powers to enforce the laws. 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.
The Government will prioritise the development of legislation to prohibit unfair trading practices and will consult stakeholders on draft legislation in early 2026. This is part of our plan to make markets fairer, boost competition and give Australians a fair go.
We will also soon consult on expanding unfair trading practices protections to small businesses and those covered by the Franchising Code of Conduct, who can face power imbalances when dealing with larger businesses.
Quotes attributable to Assistant Minister for Productivity, Competition, Charities and Treasury, Andrew Leigh MP
"The Albanese Labor Government is putting an end to sneaky business tricks like subscription traps and hidden fees. Australians deserve transparency, not traps.
"These reforms will stop unfair trading practices that distort consumer choice and drive-up costs, making markets fairer and giving Australians a fair go.
"We're also strengthening consumer guarantees so that when products fail, Australians get the refunds, repairs or replacements they are entitled to.
"We thank the states and territories for their support of these important reforms to improve consumer protections at a state, territory and national level."
