Australia Cracks Down on Unfair Subscription Practices and Hidden Fees
23 November 2025 — Canberra, Australia
KNA
The Albanese Labor Government is taking strong action against unfair trading practices that have misled Australian consumers for years, introducing new reforms targeting deceptive subscription tactics and hidden fees.
Assistant Minister for Productivity, Competition, Charities and Treasury, Dr Andrew Leigh, announced the reforms following agreement from all States and Territories. Many consumers have complained about unexpected charges during free trials or discovering the real price of a purchase only at the final checkout stage.
Under the new rules, businesses will be required to clearly disclose key information before initiating subscriptions, notify customers before free trial periods end, and remove unnecessary barriers to cancellation. The reforms will also crack down on drip pricing, ensuring businesses display all mandatory fees upfront rather than revealing them later in the purchase process.
According to the Government, these changes aim to stop tactics that manipulate consumer decisions and cause financial harm. The reforms are expected to increase transparency, improve competition, and provide financial relief to households.
The consumer guarantees framework will also be strengthened. When a product or service fails, consumers will be entitled to refunds, repairs, or replacements, and businesses that violate the rules will face significant penalties. To protect small businesses, manufacturers will be required to provide necessary indemnification to suppliers for remedy costs.
The Government plans to release draft legislation for consultation in early 2026. It also intends to extend protections to small businesses and franchise operators, who often face power imbalances in commercial dealings.
In a press statement, Assistant Minister Dr Andrew Leigh said:
“Subscription traps and hidden fees have no place in a fair market. Australians deserve transparency, not tricks. These reforms will put an end to practices that undermine consumer choice and drive up household costs. We are also strengthening consumer guarantees to ensure Australians receive the refunds or repairs they are entitled to when products fail.”
Source: Press Statement of Dr Andrew Leigh
