Department
Department of the Treasury
Announcement date
23 November 2025
Link to announcement
Stopping unfair trading: subscription traps and hidden fees targeted
Problem being addressed
Public consultations in August 2023 and November 2024 identified examples of unfair business practices causing harm to consumers that are not currently prohibited or adequately addressed under the Australian Consumer Law (ACL). Examples include, but are not limited to, manipulative or distortive conduct particularly in an online context, unfair subscription practices and drip pricing practices.
Stakeholders noted that businesses are increasingly using manipulative or distortive practices that fall into gaps in the ACL to unfairly influence consumer behaviour or decision-making. These practices can occur in both offline and online settings, although stakeholders frequently cited businesses’ use of ‘dark patterns’ in some digital interfaces as an example of unreasonable manipulation that could cause harm. Stakeholders also raised concerns about a range of subscription practices, including businesses not providing consumers with material information they need to make informed decisions about a subscription, and practices which can make cancelling difficult. Feedback was also provided by stakeholders on unfair drip pricing practices that may not be adequately addressed by existing provisions of the ACL, particularly businesses disclosing late in a purchasing process any mandatory fees that are applied on a per transaction basis.
Proposal
The Government considered four options to address unfair trading practices:
- Option 1: Status Quo
- Option 2: Amend statutory unconscionable conduct (not progressed)
- Option 3: Amend the ACL to introduce a general prohibition on unfair trading practices
- Option 4: Amend the ACL to introduce a combination of general and specific prohibitions on unfair trading practices
This Decision Regulation Impact Statement (Decision RIS) assesses the regulatory impact of the policy options with the exception of Option 2 which was not progressed following the outcomes of, and feedback to, the August 2023 Consultation Regulation Impact Statement and the November 2024 Supplementary Consultation Paper
The Decision RIS recommended Option 4 as the preferred policy option. This option proposes the introduction of a general principles-based prohibition on unfair trading practices into the ACL, and additional specific reforms to the ACL to address unfair subscription practices and strengthen protections against drip pricing.
Option 4 has been assessed as the most effective reform option to reduce instances of consumer harm arising from unfair trading practices, without disproportionate associated costs. Implementation of this option is expected to benefit consumers by increasing their confidence in making purchasing decisions due to strengthened protections against manipulative or distortive practices. Option 4 is also expected to promote fair trading among businesses, as consumer demand is redirected to businesses with competitive goods and services, rather than those businesses that are most proficient at manipulating or distorting consumer choice to attract and retain customers. In turn, this can promote well-functioning markets, improve economic efficiency and encourage innovation and productivity growth across sectors. The potential costs identified with Option 4 are concentrated on businesses in the initial stages of familiarisation and process adjustments.
Assessed Impact Analysis outcome
Compliant Decision RIS
Regulatory burden
Treasury estimates that Option 4 will increase average regulatory costs by $123.20 million per year, over ten years.