Glad to see that the Federal Authorities is cracking down on Subscription Traps.
I learn an article by McCullough Robertson explaining that Treasury have launched draft laws on ninth February 2026, proposing amendments to the Australian Client Regulation which introduce a brand new normal prohibition on unfair buying and selling practices and particular obligations to handle unfair subscription practices, requiring companies to simplify cancellation processes and supply well timed notices of renewal, amongst others.
The article defined that session closed on 23 February 2026 on the publicity draft of the Competitors and Client Modification (Unfair Buying and selling Practices) Invoice 2026 (Cth) (Invoice). If handed, the proposed reforms are anticipated to start on 1 July 2027.
The important thing takeaway from the Competitors and Client Modification (Unfair Buying and selling Practices) Invoice 2026 (Cth) is that companies might want to look at their gross sales and advertising practices, significantly on-line, to make sure they’re adopting legit and affordable advertising practices. In case you are cashing in on confusion, subscription traps and never sending renewal reminders, listen.
Some examples which can be within the minds of the federal government when introducting this invoice embrace:
Utilizing countdown timers to create a deceptive sense of urgency or shortage;
- Navigation loops that make it troublesome to find materials info, reminiscent of pricing or cancellation phrases;
- The usage of gamification or techniques that make a shopper really feel that they’ve earned a reduction, when the low cost is definitely provided to any shopper; and
- Requiring {that a} shopper enroll or register to view an internet site product or make a purchase order.
- Transaction primarily based costs – concentrating on drip pricing
Proposed Penalties
The federal government is critical in stamping this out. For instance, physique corporates, the utmost penalty is the better of $50 million, thrice the worth of any profit obtained ensuing from the breach, or 30% of adjusted turnover through the breach interval (the place the profit can’t be decided).
Even for a person the utmost penalty is $2.5 million.
For normal insurance coverage brokers, please focus on this transformation with any of your shopper’s providing subscrption companies so they aren’t caught with these essential adjustments.
Thanks McCullough Robertson for elevating this in Lexoloy. You’re to be congratulated to your common contributions and willingness to teach. You possibly can learn the total article on Lexology.