The Albanese Government has vowed to stop businesses ripping off Australians by banning unfair trading practices under the Australian Consumer Law.
This includes stamping down on subscription traps, drip pricing practices and “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.
According to the government, this is about easing the cost of living and getting a fair go for consumers and suppliers.
Other key practices under the spotlight include 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, and tackling businesses that make 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.
Alongside the crackdown announcement, 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 is calling for 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, according to the government, 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.
"We're taking strong action to stop businesses from engaging in dodgy practices that rip consumers off,” Prime Minister Anthony Albanese said.
"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."
Treasurer Jim Chalmers said most business do the right thing 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,” he said.
“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.”
Assistant Treasurer and Minister for Financial Services Stephen Jones added that 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,” Jones said.
“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.”