UPDATE: The Albanese government has just announced groundbreaking legislation aimed at combating deceptive online sales practices, with new laws set to roll out next year. This urgent move comes as Australia enters one of its busiest online shopping seasons.
Assistant Competition Minister Andrew Leigh will deliver a pivotal speech today in Canberra, outlining fresh penalties and restrictions targeting practices like “drip pricing” and subscription traps. These tactics, which have been criticized for misleading consumers, are estimated to cost Australians a staggering $46 million annually.
This announcement is a proactive response to growing concerns over unfair trading practices that leave shoppers feeling trapped in unwanted subscriptions. According to Leigh, these tactics not only hurt individual consumers but also undermine competition and inflate overall costs in the marketplace.
In a bid to restore consumer trust, the upcoming legislation will introduce an economy-wide ban on any trading practices that manipulate or distort decision-making processes. Key provisions will require businesses to disclose essential consumer protection terms before purchases are confirmed, ensuring transparency and fairness.
Moreover, the new laws will mandate that all per-transaction fees—a critical component of drip pricing—be clearly displayed during the checkout process. This initiative aims to eliminate unpleasant surprises for consumers when finalizing their online purchases.
Leigh emphasizes the negative impact of these deceptive practices, stating, “They drain time and money, but they also erode trust. They shift advantage towards firms that design obstacles and away from those that invest in clear products and straightforward service.”
The proposed measures have garnered support from various state governments and are expected to significantly reshape the landscape of online retail in Australia. As consumers increasingly shift towards digital shopping, these new laws aim to safeguard their interests and ensure a fairer marketplace.
Consumers are urged to stay alert as further details will be shared in the coming weeks. This anticipated legislation is poised to fundamentally change how online sales operate, making transparency a top priority and protecting millions of Australians from unnecessary costs.
Stay tuned for more updates as this situation develops.
