Unfair Trading Practices: Australian Consumer Law Updates August 3, 2026

The Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Bill) was passed on 2 July 2026 and introduces new protections for consumers under the Australian Consumer Law (ACL). The new regime will take effect on 1 July 2027 and forms part of a broader consumer protection agenda aimed at addressing business practices that manipulate consumer decision-making, particularly in digital sales environments and subscription-based services.

The ACCC, Australia’s consumer protection body, will be responsible for enforcement. Businesses that fail to comply may face regulatory investigations, infringement notices and significant penalties under the ACL.

In this article, we outline the legal changes and steps businesses should take before the reforms commence.

General Prohibition on Unfair Trading Practices

The Bill introduces a general prohibition on unfair trading practices directed at consumers. The new prohibition compliments existing ACL protections relating to misleading or deceptive conduct, unconscionable conduct and unfair contract terms.

An unfair trading practice occurs where conduct manipulates a consumer or unreasonably distorts the environment in which a consumer makes a decision and causes or is likely to cause detriment. Importantly, the detriment does not need to be financial and could include wasted time or emotional distress.

Examples of conduct that may be captured include:

• countdown timers or scarcity claims that create a false sense of urgency;
• operating website designs that make a less favourable option easier to purchase;
• concealing or failing to disclose important pricing information or contractual terms; and
• using interface designs that pressure consumers into providing consent or making purchases they would not otherwise make.

This prohibition applies only to consumer transactions.

Commercial Implications:

The reform is intended to address the use of ‘dark patterns’, where online environments are designed to confuse or pressure consumers into taking action. Businesses should be careful to ensure that both in person and online sales conduct is not designed to manipulate or distort consumers’ choices. The broad drafting of the prohibition may enable the ACCC to take enforcement action in circumstances that previously fell outside existing ACL protections.

Drip Pricing Protections

The new regime directly targets drip pricing, a practice where additional mandatory fees are disclosed progressively throughout the purchasing process rather than upfront.

Where goods or services are advertised at a base price, businesses must also disclose any applicable transaction-based charge, or the method used to calculate that charge if the amount is not known in advance. Transaction-based charges must be displayed clearly, prominently and at the same time as the base price.

These mandatory disclosures apply only to goods or services that are used for personal, domestic or household purposes.

Commercial Implications:

Taxes and duties are excluded from charges that fall under the drip pricing provisions, so businesses do not need to change pricing practices for these charges. Instead, businesses should review booking platforms, online marketplaces and other digital sales channels to ensure mandatory charges are disclosed at the earliest possible stage of the purchasing process. The manner of displaying charges such as booking or service fees and certain delivery fees warrant particular attention.

Businesses offering recurring payment arrangements should review the transparency of any ongoing or additional fees and ensure customers can readily identify the total cost of a transaction before committing to a purchase.

Subscription Contract Updates

Finally, the Bill introduces new requirements that subscription contracts must comply with.

Subscription contracts are those that provide for a continuing or recurring supply of goods/services over an indefinite or fixed period with an automatically incurred liability for payment. Contracts that begin with a free or discounted period before converting to a higher price are also captured within the definition. Unlike the other changes introduced, the new requirements for subscription contracts also extend to contracts with small businesses.

Suppliers must disclose key information when offering a subscription and provide consumers with specified notices throughout the subscription period. Additionally, a simple cancellation procedure must be made available to consumers. If a contract can be entered online, consumers must also be able to cancel online.

Commercial Implications:

Simple exit methods are key to compliance. Businesses should assess subscription models and cancellation processes to ensure they do not create unnecessary barriers to contract cancellation. Practices such as requiring customers to contact customer support, navigate multiple unnecessary steps or search excessively for cancellation options may require reconsideration.

Future regulations are expected to clarify the disclosure obligations and notice requirements. Until further guidance is available, businesses should prioritise transparency and simplicity when offering subscription models or recurring payment arrangements.

Steps to Prepare

While the reforms do not commence until 1 July 2027, businesses should begin reviewing sales practices and subscription arrangements now.

Key preparation steps we recommend include:

• assessing online interfaces and in person sales practices to ensure consumers are not manipulated or pressured into decision-making;
• displaying all mandatory charges clearly and prominently from the outset alongside base prices;
• reviewing the information provided alongside a subscription contract to ensure key information about price, contract period and cancellation are included; and
• offering simple exit methods for consumers ending subscription contracts, including an online method where online entry is possible.

Key Takeaways

The unfair trading practices regime reflects an expansion of consumer protections under the ACL. Regulators are focusing on consumer-facing conduct, so acting early is the best practice to ensure your business is prepared and compliant when these reforms come into force.