Businesses will no longer be able to ask consumers to create an account to make an online purchase under proposed changes to consumer law.
Prime Minister Anthony Albanese said the Federal Government was targeting a range of unfair trading practices in a revamp of Australian Consumer Law.
Prime Minister Albanese said in addition to addressing the issue of some businesses requiring consumers to set up an account and provide unnecessary information to make an online purchase, the changes would target practices like “subscription traps” that used arduous and confusing steps to make cancelling a subscription difficult and “drip pricing” where fees were hidden or added throughout the stages of a purchase.
He said other practices to be banned included:
- Deceptive and manipulative online practices that aim to confuse or overwhelm consumers, omit or hide material information, or create a false sense of urgency or scarcity. This can include warnings that a customer only has limited time to purchase a product.
- Dynamic pricing where a product’s price changes during the transaction process.
- Where a business makes it difficult for a consumer to contact them when they have a problem with their product or service.
Prime Minister Albanese said these practices could distort purchasing decisions, or result in additional costs, putting more pressure on the cost of living.
“Treasury will consult on the design before the Government legislates a general prohibition on unfair trading practices. This will include specific prohibitions of a range of dodgy practices.”
He said a consultation paper on the reforms to strengthen protections for consumers and small businesses under the Consumer Guarantees and Supplier Indemnification provisions of the Australian Consumer Law had been released.
“The Government welcomes stakeholder feedback on the proposed reforms, which include introducing penalties for suppliers that refuse to provide consumers with a remedy such as a repair, replacement or refund when required under law.”
