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Dodgy business practices that trap consumers into hard-to-escape subscriptions or hit shoppers with hidden fees are a step closer to being weeded out.
Legislation outlawing the manipulative tactics known as drip pricing and subscription traps will be introduced by the end of next year, the federal government has announced as it ramps up efforts to prevent consumers from being ripped off.
In recent years, firms have increasingly used “dark patterns” in online shopping to benefit themselves at the expense of consumer understanding, Assistant Minister for Competition Andrew Leigh will say in a speech in Canberra on Monday.
By tweaking digital user interfaces, hiding essential information in places shoppers rarely look, and exploiting increased understanding of consumer behaviour, businesses have tilted the market against consumers.

“The outcome was an environment where consumers were not merely making choices but were being guided,” he is expected to state.

Plans to draft new legislation will commence in early 2026, targeting a ban on unfair trading practices that negatively impact consumers by manipulating or distorting their decision-making processes.

Additionally, companies will be mandated to reveal all unavoidable fees at the beginning of a transaction. This measure aims to simplify the process for consumers to compare options for purchases, such as concert or airline tickets, before additional costs like booking and baggage fees unexpectedly increase the final price.

Research estimates Australians are losing $46 million each year as a result of subscription traps.
To level the playing field, businesses will be required to disclose key terms before sign-up, provide timely reminders at critical points and make it as easy to walk out of a subscription as it is to sign up.

“In the realm of food production, there have been reports of retailers threatening to remove suppliers from their lists as retaliation for pursuing price increases that they are contractually allowed to request.”

As part of the changes, the government will seek to expand consumer protections to small businesses to shield them from unfair conduct by larger firms.
“In construction, we have heard complaints that large businesses discourage smaller businesses from exercising their legal rights by ominously suggesting adverse commercial consequences,” Leigh will say.

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Leigh’s missive comes as the Black Friday-Cyber Monday shopping bonanza, during which businesses try to lock shoppers into subscriptions with enticing discounts, draws to a close.
The Australian Retailers Association expects Australians to spend a record $6.8 billion over the four-day sales period — an increase of 4 per cent from 2024.
The shopping fixture has grown in importance for retailers in recent years, with data showing households are increasingly putting off spending during the rest of the year.

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