Consumers in Australia can expect relief from unfair business practices as the government moves to ban tactics such as subscription traps and dynamic pricing. The crackdown aims to protect consumers' wallets and promote fair competition.
 |
| The Australian government is taking action against deceptive business practices, including hidden fees, subscription traps, and dynamic pricing. The proposed measures aim to protect consumers and ensure fair competition. |
Canberra, Australia – October 16, 2024:
The Australian government has unveiled a series of measures aimed at curbing deceptive business practices, including subscription traps, hidden fees, and dynamic pricing. The move comes in response to growing concerns about the impact of these practices on consumers' wallets.
Subscription traps, which make it difficult for consumers to cancel ongoing contracts, have been identified as a particular area of concern. A recent report by the Consumer Policy Research Centre found that three in four Australians had experienced frustration when attempting to unsubscribe from subscriptions. The government's proposed legislation seeks to address this issue by imposing stricter requirements on businesses to make cancellation processes clear and easy.
Dynamic pricing, which allows businesses to adjust prices based on factors like demand and consumer behavior, has also come under scrutiny. The practice has been criticized for its potential to exploit consumers by charging exorbitant prices during peak demand periods. The government's proposed changes aim to introduce greater transparency and accountability in the use of dynamic pricing.
Other targeted practices include drip pricing, which involves adding hidden fees during the checkout process, and deceptive marketing tactics that mislead consumers. The government's goal is to create a fairer and more consumer-friendly marketplace by prohibiting these unfair and manipulative practices.
Prime Minister Anthony Albanese emphasized the importance of addressing these "dodgy" business practices. "Hidden fees and traps are putting even more pressure on the cost of living and it needs to stop," he stated. Treasurer Jim Chalmers echoed this sentiment, noting that while most businesses operate ethically, there is a need to crack down on those that engage in unfair practices.
The government's proposed legislation is expected to undergo public consultation before being introduced to parliament. The changes are part of a broader effort to provide relief to Australian consumers amid rising living costs and economic uncertainty.