Treasury has released a supplementary consultation paper containing proposals to amend the Australian Consumer Law to add a general prohibition that is principles‑based and specific prohibitions targeting certain unfair practices including subscription traps, drip pricing, and dynamic pricing.
Examples of unfair trading practices considered by the consultation paper:
- Subscriptions that silently renew or automatically rollover from a free trial or promotional period to a paid or full price subscription
- Warnings that create a false sense of scarcity by claiming a small number of items are left (for example ‘only 2 items left’), despite stock being available elsewhere
- Subscription cancellation processes that are difficult to navigate and overly complex or time consuming
- Increasing ticket prices during the transaction process (commonly based on demand as more people enter the queue)
- Mandating consumers have an online account and requiring them to provide unnecessary personal information in order to make a purchase
- Making it difficult to access customer support to raise a complaint or problem with a product or service.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
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.
