The Australian government is set to introduce new legislation aimed at eliminating deceptive business practices that trap consumers in difficult-to-escape subscriptions and impose hidden fees. Assistant Minister for Competition Andrew Leigh announced this initiative in Canberra, emphasizing the need to protect consumers from manipulative tactics known as “dark patterns.” These practices have gained traction in recent years, exploiting consumer behavior to benefit businesses at the expense of transparency.
Leigh outlined the government’s plans to outlaw manipulative practices such as drip pricing and subscription traps by the end of 2026. This legislation will require businesses to disclose essential information clearly before consumers sign up for services, ensuring that individuals are fully informed about the terms and conditions. He stated, “The result was an environment in which consumers were not simply deciding, but being steered.”
Combating Subscription Traps and Hidden Fees
Research suggests that Australians lose approximately $46 million annually due to subscription traps. To address this issue, the new laws will mandate that businesses provide timely reminders during critical decision-making moments, making it as simple to cancel a subscription as it is to sign up. In addition, all unavoidable fees must be disclosed upfront during transactions, allowing consumers to make informed comparisons, particularly for purchases like concert or airline tickets where hidden charges can significantly inflate costs.
Leigh also indicated that the government intends to extend consumer protections to small businesses. This move aims to shield them from unfair practices by larger firms, which have been known to manipulate smaller competitors. He highlighted instances in the construction sector where larger companies discourage smaller businesses from asserting their legal rights by threatening adverse commercial consequences. In the food production industry, retailers have reportedly threatened to delist suppliers in retaliation for seeking contractually entitled price increases.
Impact of Upcoming Shopping Events
Leigh’s announcement coincides with the conclusion of the Black Friday-Cyber Monday shopping period, a time when businesses heavily market subscriptions through enticing discounts. The Australian Retailers Association anticipates that Australians will spend a record $6.8 billion during this four-day sales event, marking a 4 percent increase from 2024. This shopping fixture has become increasingly important for retailers, particularly as households are more cautious with their spending throughout the rest of the year.
The government’s commitment to curbing deceptive practices reflects a growing recognition of the need for consumer protection in an evolving digital marketplace. As the consultation process for the new laws begins in early 2026, the emphasis will be on creating a fairer and more transparent shopping environment for all consumers.
