The Albanese Government is cracking down on unfair trading practices that are ripping off Australians.
With the New Year, comes new resolutions and Australians will be thinking about what goals to set and tackle by the year’s end. This might be signing up to the local gym, a meal‑kit provider or a wellness app.
These subscriptions or memberships should be just as easy to get out of as they are to sign up to.
Unfortunately, there’s been a rise in dodgy practices that make it almost impossible to unsubscribe. This practice is known as ‘subscription traps’, and the Albanese government is cracking down on it.
Last year, the government announced it would legislate a general prohibition on unfair trading practices, as well as a ban on specific practices, including subscription traps.
Consultation closed in December, and the Government is working through stakeholder feedback, but nothing is stopping businesses stamping out this tricky tactic now.
Before signing up, Australians should be alert to tactics that make it difficult to unsubscribe or free trials that automatically renew without any warnings.
These practices could cost Australians hundreds or even thousands, while also wasting a lot of time jumping through maze‑like ‘unsubscribe’ hoops.
Businesses should steer clear of preying on Australians for an extra payday.
Quotes attributable to Assistant Treasurer and Minister for Financial Services, Stephen Jones MP
“It is frankly un‑Australian for businesses to engage in this kind of tricky behavior and our government says enough is enough.
“We want people to be alert to these dodgy practices, but more importantly we want businesses to stamp it out altogether.
“We plan to introduce legislation that will impose penalties on businesses who choose to continue trying to rip off Australians.”