On 2 July 2026, Parliament passed the Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Bill), which will take effect from 1 July 2027. The Bill significantly expands consumer protections under the Australian Consumer Law (ACL), including a general prohibition on unfair trading practices, new disclosure requirements for drip pricing and enhanced protections against subscription traps.  

The purpose of the Bill is said to be to increase consumer trust in the marketplace and promote fairer trading among businesses. Businesses should start reviewing their processes as the new reforms introduce broader obligations that capture conduct that may not have previously amounted to a breach of the ACL. 

The Bill amends the Competition and Consumer Act 2010 (Cth) (Competition and Consumer Act), including the ACL, to enhance protections against unfair trading practices by: 

• introducing a general prohibition on 'unfair trading practices' towards consumers; 

• strengthening protections against drip pricing by requiring transparency of transaction-based charges; and

• introducing protections against subscription practices that are detrimental to consumers and small businesses. 

The Bill is intended to prohibit conduct that wrongfully interferes with a consumer’s decision-making and eliminate conduct that involves the use of "dark patterns" in digital interfaces. Previously, no definition of an 'unfair trading practice' existed in the ACL. However, the Bill inserts section 28B(2), which states that a person engages in unfair trading practices if, and only if, in connection with the supply of, or an offer to supply, goods or services to a consumer, the person engages in conduct that: 

1. does or is likely to do either or both of the following: 

a) manipulate the consumer; or 

b) unreasonably distort the environment in which the consumer makes, or is likely to make, a decision; and

2. causes or is likely to cause detriment (whether financial or otherwise) to the consumer. 

The Explanatory Memorandum to the Bill states that: 

• manipulation means "wrongful interference with a consumer that results in a change in the consumer’s behaviour, decision-making or action that is against the consumer’s interests"; and 

• unreasonable distortion is encouraging "a consumer to make economic decisions about proceeding with a transaction when they otherwise would have been unlikely to do so" 

However, these explanations are not definitions or certified terms in this Bill. 

Under the new section 28B(6), such conduct includes: 

• impeding the consumer’s ability to exercise legal rights, or seek legal remedies; 

• failing to disclose material information to the consumer; 

• disclosing material information to the consumer in a complex, ineffective, unclear, unintelligible, ambiguous, untimely or overwhelming way; and/or

• creating an environment (including by using design elements in digital interfaces) that places the consumer under unreasonable pressure in relation to, or obstructs the consumer from, making or fulfilling the consumer’s decision. 

The Bill amends Part 3-1 - Unfair Practices of the ACL to ensure information relating to transaction based charges is displayed throughout the purchase process. This is intended to strengthen protections against 'drip pricing', a practice whereby businesses gradually add fees during the transaction process and to ensure potential buyers are aware of mandatory transaction based charges. Under the Bill, a business will be required to disclose any applicable transaction-based charges (excluding surcharges and taxes) for goods or services during the purchase process, including: 

• either if the amount of the transaction based charge can be calculated, the amount of the transaction based charge or in any other case, the method for calculating the transaction-based charge; 

• if applicable, that it is a per transaction charge; 

• whether the transaction based charge is or may be payable; and

• whether or not the base price displayed includes the transaction based charge. 

Such pricing information must be legible, prominent, unambiguous and in close proximity to the base price at the time the consumer is making the purchase. 

The Bill introduces protections against subscription practices that are detrimental to consumers by requiring businesses that offer or supply goods or services under a subscription contract to: 

• disclose key information about the contract when making the offer; 

• notify subscribers of key information at key times while a contract is in effect; and 

• ensure that there is an easy and straightforward way for subscribers to end a subscription contract with minimal steps, and a way to end the contract online in certain circumstances (e.g. if the contract was entered into online). 

The new section 48D outlines the statement and information that must be disclosed when offering goods or services under a subscription contract. Under subsection 48D(4), information about the following matters must be disclosed to the customer:  

• liabilities to pay that a party to the contract (other than the supplier) would or may incur under the contract;  

• the period of the contract;  

• The renewal, extension or other continuation of the contract;  

• any notice required before a party to the contract (other than the supplier) can end the contract;  

• how a party to the contract (other than the supplier) can end the contract; 

Under the new section 48F, a supplier must: 

• provide a way for the subscriber to end the contract; and  

• ensure that each way the supplier provides for the subscriber to end the contract: 

• is easy to find; 

• is straightforward; and

• requires the subscriber to take steps that are reasonably necessary to end the contract  and protect the subscribers interests. 

A business can reduce its risk in this respect by using clear point-of-sale disclosures, timely renewal procedures or reminders and cancellation processes (including in respect of ending of trials). 

The maximum penalties for contraventions of the new unfair trading prohibitions align with the existing penalties for contraventions of the ACL. Such contraventions will attract the existing maximum penalties under the ACL, including fines amounting to the greater of: 

• $100 million; 

• three times the value of any benefit gained from the breach; or 

• 30% of the business's adjusted turnover during the breach period. 

Before the Bill takes effect on 1 July 2027, you should: 

• review customer engagement journeys and contracting processes to identify any practices that may manipulate consumers, conceal key information or otherwise distort consumer decision making; 

• check whether you have subscription contracts and test whether updates are properly communicated and the termination process is relatively straightforward; 

• review your pricing disclosures and arrangements to ensure you disclose all fees and charges upfront; 

• audit your cancellation processes to confirm they are easy to find, straightforward and limited to steps that are reasonably necessary to end the subscription and protect the subscriber’s interests; 

• assess your customer engagement and product purchase process to identify any point where consumers may be pressured, obstructed or nudged into making or implementing a decision; 

• review your website and app design to ensure digital interfaces do not manipulate consumers, obscure key information or unreasonably distort a consumer's decision-making environment; 

• review subscription disclosures and reminder processes to ensure key information is provided clearly at sign-up and, where required, at key points during the subscription; 

• review pricing displays to ensure any applicable transaction-based charges are disclosed when the base price is displayed, including whether the charge applies, the amount or calculation method, whether it applies per transaction and whether it is included in the base price. 

For tailored advice on preparing your business for these reforms, please contact our Corporate & Commercial team.