URGENT UPDATE: The Albanese government is set to roll out groundbreaking legislation aimed at protecting Australian consumers from deceptive online sales practices. Assistant Competition Minister Andrew Leigh will confirm these new laws during a speech in Canberra on Monday, responding to rising concerns over tactics like “drip pricing” and subscription traps that are costing Australians an estimated $46 million annually.
As the online shopping frenzy intensifies during one of the busiest shopping periods of the year, this announcement couldn’t come at a more critical time. The proposed legislation, scheduled for implementation in 2024, will introduce strict penalties for businesses that mislead consumers about product costs and make it difficult to end unwanted subscriptions.
Leigh emphasized the urgency of these measures, stating that current practices not only harm individual consumers but also stifle competition and inflate overall market costs. “They drain time and money, but they also erode trust,” he said. “They shift advantage towards firms that design obstacles and away from those that invest in clear products and straightforward service.”
The new laws will mandate that online retailers prominently disclose all fees, including per-transaction costs associated with drip pricing, right at the checkout. Additionally, businesses will be required to eliminate “unreasonable barriers” that prevent consumers from easily canceling subscriptions. This economy-wide ban on unfair trading practices aims to enhance transparency and empower consumers in their purchasing decisions.
Leigh’s announcement has garnered support from state governments, signaling a unified front against these deceptive sales practices. As consumers increasingly turn to digital platforms for their shopping needs, these changes are vital to fostering a fairer marketplace.
As this situation develops, consumers should stay informed about their rights and the new protections that will soon be in place. The Albanese government’s commitment to transparency in online shopping practices marks a significant shift towards safeguarding consumer interests.
Stay tuned for more updates as this story unfolds!
