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HomeAUAustralians May Soon See an End to Hidden Fees and Subscription Pitfalls

Australians May Soon See an End to Hidden Fees and Subscription Pitfalls

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Australians could soon be freed from the pain of hidden transaction fees or being caught in subscription fees under new draft laws released by the federal government today.
The proposed legislation would force businesses to provide clear and easy ways for customers to cancel their subscriptions, and clearly disclose any transaction fees, rather than hiding them until online shoppers get to the checkout.

“The proposed legislation aims to prohibit detrimental business practices that unfairly sway or alter consumer choices,” stated Andrew Leigh, the Assistant Minister for Competition and Treasury.

Australian notes scattered on a table. Australian money stock image
Australians could soon be freed from the pain of hidden transaction fees under new draft laws announced today. (Getty)

“Many Australians have experienced the frustration of clicking ‘buy’ only to face unexpected charges at checkout or have struggled to escape subscriptions that are much simpler to start than to cancel,” he added.

Leigh emphasized that companies would be required to inform customers at crucial points in their subscription journeys, ensuring they are aware of impending payments.

Additionally, the initial 2024 announcement highlighted upcoming measures to tackle dynamic pricing, a practice where prices fluctuate during the purchasing process.

Dynamic pricing was a significant concern, as highlighted by concertgoers who faced ticket prices soaring up to $500 for a Green Day show, while major events like the Australian Open and the Australian Grand Prix encountered similar pricing issues.

The new laws announced today make no mention of dynamic pricing.

Andrrew Leigh claims the new laws will help Aussies battle cost of living pressures.
Andrrew Leigh said the new laws will help Australians battle cost of living pressures. (Ben Appleton)

Nine.com.au has contacted Leigh’s office for comment on dynamic pricing.

He also said regulators would have more authority to protect customers and enforce the new laws.

The measures, which have been planned in collaboration with state governments, will help Australians’ hip pockets, Leigh said.

“With cost-of-living pressures front of mind, the government is acting to ensure the price consumers see is the price they pay,” he said.

“Stronger competition is essential to easing cost-of-living pressures.”

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