Glad to see that the Federal Authorities is cracking down on Subscription Traps.
I learn an article by McCullough Robertson explaining that Treasury have launched draft laws on ninth February 2026, proposing amendments to the Australian Shopper Legislation which introduce a brand new normal prohibition on unfair buying and selling practices and particular obligations to deal with unfair subscription practices, requiring companies to simplify cancellation processes and supply well timed notices of renewal, amongst others.
The article defined that session closed on 23 February 2026 on the publicity draft of the Competitors and Shopper Modification (Unfair Buying and selling Practices) Invoice 2026 (Cth) (Invoice). If handed, the proposed reforms are anticipated to begin on 1 July 2027.
The important thing takeaway from the Competitors and Shopper Modification (Unfair Buying and selling Practices) Invoice 2026 (Cth) is that companies might want to study their gross sales and advertising practices, notably on-line, to make sure they’re adopting reliable and cheap advertising practices. If you’re making the most of confusion, subscription traps and never sending renewal reminders, concentrate.
Some examples which can be within the minds of the federal government when introducting this invoice embody:
Utilizing countdown timers to create a deceptive sense of urgency or shortage;
- Navigation loops that make it troublesome to find materials data, corresponding to pricing or cancellation phrases;
- Using gamification or techniques that make a client really feel that they’ve earned a reduction, when the low cost is definitely supplied to any client; and
- Requiring {that a} client join or register to view an internet site product or make a purchase order.
- Transaction based mostly expenses – concentrating on drip pricing
Proposed Penalties
The federal government is severe in stamping this out. For instance, physique corporates, the utmost penalty is the better of $50 million, thrice the worth of any profit obtained ensuing from the breach, or 30% of adjusted turnover through the breach interval (the place the profit can’t be decided).
Even for a person the utmost penalty is $2.5 million.
For normal insurance coverage brokers, please focus on this modification with any of your consumer’s providing subscrption providers so they don’t seem to be caught with these essential adjustments.
Thanks McCullough Robertson for elevating this in Lexoloy. You might be to be congratulated to your common contributions and willingness to coach. You may learn the total article on Lexology.
