Assistant Minister Andrew Leigh is on a mission to crack down on unfair consumer trading practices. Photo: Andrew Leigh.
Cracking down on unfair consumer trading practices has become a priority for the Federal Government, and no one is more keen to get that message out than the Member for Fenner, Andrew Leigh.
The Assistant Minister for Productivity, Competition, Charities and Treasury is making it his mission to let shonky operators know their rorts are coming to an end, and to let consumers know the government’s got their back.
With modern exploitative marketing techniques outpacing existing regulatory frameworks, and with household budgets being increasingly squeezed, the government is updating the law to give consumers greater protections.
The plan is to consult with stakeholders early in the new year on draft legislation seeking to ban numerous unfair trading practices, then introduce the bill later in 2026.
In a major speech to Canberra’s Manning Clark House in Forrest on Monday (1 December), and seen in advance by Region, Dr Leigh outlines what the government intends to do and why.
Practices such as subscription traps and drip pricing are in the Assistant Minister’s sights, as the government prioritises developing legislation to prohibit these and other unfair trading practices.
Examples of subscription traps include 24-hour gyms that offer immediate signups on their apps but make it far harder to opt out, with cancellations available only after many steps on a website.
Another example is a dating app offering month-only subscriptions that auto-renew for longer periods and charge cancellation fees for leaving early.
Drip pricing is when a low upfront price is displayed, and only after the consumer has progressed through several steps do additional mandatory per-transaction charges appear.
Examples include concert tickets advertised at a certain price, with a compulsory ‘service fee’ added at the last stage of the booking process.
Or a provider of home internet services advertising a competitive introductory rate for new customers, only to reveal further into the signup process that a significant set-up fee is added, contrary to how the service was promoted.
“Our reform goes beyond making cancellation easier,” Dr Leigh says.
“It sets a new standard for fairness in subscription models, ensuring people know what they are signing up for, can manage their commitments and are not trapped by design.
“Businesses will be required to clearly disclose key terms before signup, provide timely reminders at critical points and remove unreasonable barriers to cancellation.”
Dr Leigh says the government’s reforms will help shape the kind of economy Australia wants, where prices are what they seem and where people can leave a service as easily as they join it.
Design will have to support intention rather than undermine it, and innovation will be driven by quality, transparency, and user experience – not by burying information in fine print or hiding fees until the final screen.
“Consumer protection is one of the foundations of a confident, competitive economy,” Dr Leigh says.
“When Australians can see what they are paying for, understand the terms they are agreeing to and act on their own decisions without unnecessary barriers, markets function more effectively.
“People switch providers more readily. New entrants have a fair chance to compete. Innovation flourishes because firms succeed by offering better value rather than by obscuring the true cost of what they sell.”
Commonwealth, state and territory ministers met in Canberra on 21 November and agreed on the need to introduce a ban on unfair trading practices that reflects a shared judgement across jurisdictions.
The ministers agreed that the current framework was no longer keeping pace with how commerce is conducted.
They agreed that Australians should be able to understand what they are paying for, rely on the information presented to them and exercise a genuine choice to enter or leave a service.
“When subscription traps and drip pricing became embedded across parts of the economy, those basic expectations were no longer being met,” Dr Leigh says.
“People were encountering signup flows that minimised key information, cancellation paths that absorbed time and attention, and price displays that withheld unavoidable charges until the last possible moment.”
There was also a wider concern that practices that rely on confusion create advantages for firms willing to adopt them, and disadvantages for firms that operate transparently.
This tilts the market in the wrong direction, a dynamic that consumer advocates and regulators have warned about for some time.
“Left unchecked, these practices make our economy less dynamic by discouraging people from exploring alternatives or trying new providers,” Dr Leigh says.
“A competitive system cannot thrive when confusion becomes a strategy and clarity becomes a disadvantage.
“That is why we acted. The ban on unfair trading practices gives government a modern framework to respond to conduct that distorts choice.
“It provides regulators with the tools to intervene early and firmly, and it sets expectations that honest businesses can meet with ease.
“In doing so, it strengthens the conditions under which fair competition can occur.”
