The Australian Parliament has passed the Competition and Consumer Amendment (Unfair Trading Practices) Act 2026 (Cth), to amend the Australian Consumer Law by banning unfair trading practices and subscription traps from 1 July 2027.

Unfair trading practices capture conduct in connection with the supply of, or an offer to supply, goods or services that manipulates the consumer and causes, or is likely to cause, detriment (whether financial or otherwise) to the consumer.

The changes strengthen protections against ‘drip pricing’ by requiring a person offering goods or services at a base price to disclose information relating to any applicable transaction-based charge that would apply to the supply of those goods or services.

The changes also require a person offering goods or services under a subscription contract to provide subscribers with certain pre-contract and ongoing information and an easy and straightforward way to end a subscription, including an online cancellation option in certain circumstances.

The reforms will not apply to the financial services sector for the time being, but the Government says it is working with the states and territories and the Australian Securities and Investments Commission to explore further alignment of protections within the financial services sector.

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Author: David Jacobson
Principal, Bright Corporate Law
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The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.