Government pulls the plug on subscription traps and sneaky fees

The Albanese Government is gearing up to ban unfair trading practices, cracking down on subscription traps, hidden fees and dodgy tactics that cost Australians time and money. Here’s what the new rules mean for small businesses and consumers.

Government declares war on sneaky subscription tricks

The Albanese Government has announced major reforms to stamp out unfair trading practices, with subscription traps, hidden fees and manipulative sales tactics firmly in the firing line. The move comes after all states and territories agreed to push ahead with a nationwide crackdown.

Assistant Minister for Productivity, Competition, Charities and Treasury, Andrew Leigh, said Australians are fed up with confusing sign-ups, surprise charges and checkout stings.

“The Albanese Labor Government is putting an end to sneaky business tricks like subscription traps and hidden fees,” Leigh said. “Australians deserve transparency, not traps.”

Say goodbye to sneaky sign-ups and surprise charges

Under the new rules, businesses will need to spell out key subscription details before a customer signs up. Free trials will no longer be a set-and-forget trap. Companies will be required to notify customers before a trial switches to a paid plan.

Just as importantly, businesses will have to remove those ridiculous cancellation barriers that make exiting a subscription feel like trying to escape a maze with no doors. If a customer wants out, they should be able to get out without any fuss.

The reforms also target drip pricing, the dodgy practice of revealing mandatory fees only at the last second. From booking platforms to online checkout pages, companies will need to show the true price upfront.

“These reforms will stop unfair trading practices that distort consumer choice and drive up costs. It’s about making markets fairer and giving Australians a fair go,” Leigh said.

Stronger consumer guarantees and tougher penalties

Beyond subscriptions and pricing, the government is also beefing up consumer guarantees. If a product or service fails, Aussies should get the refund, repair or replacement they’re entitled to. Most importantly, small businesses shouldn’t be left holding the bill on behalf of manufacturers.

To make sure the new rules stick, regulators will get expanded powers and businesses that break the law will face significant civil penalties.

Manufacturers will be required to indemnify retailers and suppliers, ensuring they aren’t left thousands out of pocket when dealing with faulty goods. For small businesses, that’s a big win.

When will the new laws kick in?

The government plans to release draft legislation in early 2026, with further consultation to come. They’ll also examine extending the protections to small businesses and franchisees, as this sector often faces heavy power imbalances when dealing with bigger players.

As we wait for the legislation to be presented, the main message out of Canberra is that the era of surprise charges, hard-to-escape subscriptions and hidden add-ons is coming to an end.

“We thank the states and territories for their support of these important reforms to improve consumer protections at a state, territory and national level,” Leigh concluded.

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