Dodgy business practices that trap consumers into hard-to-escape subscriptions or hit shoppers with hidden fees are a step closer to being weeded out.
Legislation outlawing the manipulative tactics, known as drip pricing and subscription traps, will be introduced by the end of next year, the federal government has announced as it ramps up work to prevent consumers from getting ripped off.
In recent years, firms have increasingly made use of “dark patterns” in the online shopping world to benefit themselves at the expense of consumer understanding, Assistant Minister for Competition Andrew Leigh will say in a speech in Canberra on Monday.
By tweaking digital user interfaces, hiding essential information in places shoppers rarely look, and exploiting increased understanding of consumer behaviour, businesses have tilted the market against consumers.
“The result was an environment in which consumers were not simply deciding, but being steered,” he will say.
Consultation on drafting new laws will begin in early 2026, with an aim to introduce a ban on unfair trading practices which cause harm to consumers by manipulating or distorting their decision-making.
Research estimates Australians are losing $46 million each year as a result of subscription traps.
To level the playing field, businesses will be required to disclose key terms before sign-up, provide timely reminders at critical points and make it as easy to walk out of a subscription as it is to sign up.
Businesses will also be required to disclose all unavoidable fees early and upfront in a transaction, making it easier for consumers to compare offers for purchases such as concert fees or plane tickets, before hidden fees such as booking and baggage blow out the price.
As part of the changes, the government will seek to expand consumer protections to small businesses to shield them from unfair conduct by larger firms.
“In construction, we have heard complaints that large businesses discourage smaller businesses from exercising their legal rights by ominously suggesting adverse commercial consequences,” Dr Leigh says.
“In food production, we have heard of retailers threatening to de-list suppliers in retaliation for seeking price increases to which they are contractually entitled.”
Dr Leigh’s missive comes as the Black Friday-Cyber Monday shopping bonanza, during which businesses try to lock shoppers into subscriptions with enticing discounts, draws to a close.
The Australian Retailers Association expects Australians to spend a record $6.8 billion over the four-day sales period – an increase of four per cent from 2024.
The shopping fixture has grown in importance for retailers in recent years, with data showing households are increasingly putting off spending during the rest of the year.
Australian Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national newswire and has been delivering accurate, reliable and fast news content to the media industry, government and corporate sector for 85 years. We keep Australia informed.
