Federal gov’t outlaws dynamic pricing, hidden fees and other ‘unfair’ tactics

Prime Minister Anthony Albanese has announced that the Australian consumer law will be updated to outlaw unfair business tactics. The move comes after Treasury consultations and aims to prevent businesses from engaging in practices that harm consumers. Albanese emphasized that businesses engaging in unfair trading practices are on notice.

The new laws will prohibit tactics like dynamic pricing, drip pricing, and subscription traps, which add hidden costs and make it difficult for consumers to cancel services. The announcement follows an investigation into Ticketmaster’s parent company, Live Nation.

Treasurer Jim Chalmers added that the goal is to crack down on dodgy deals and save Australians money. The ban on unfair practices aims to ensure transparency and fairness for consumers.

The ‘dodgy’ practices to be banned

• ‘Subscription traps’ – arduous and confusing steps that make cancelling a subscription difficult.
• ‘Drip pricing’ practices where fees are hidden or added throughout the stages of a purchase.
• Deceptive and manipulative online practices that aim to confuse or overwhelm consumers.
• Dynamic pricing – where a product’s price changes during the transaction process.
• Requiring consumers to set up an account and provide unnecessary information to make an online purchase.
• Obstructing consumers from contacting a business for problem resolution.