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Consumer groups have welcomed the release of Exposure Draft Legislation on Unfair Trading Practices, including two specific prohibitions targeting subscription traps and drip pricing.

Consumer Action Law Centre CEO, Stephanie Tonkin said she was delighted Assistant Minister Andrew Leigh is moving forward with these vital reforms which have the potential to “…transform the consumer experience in Australia away from harm and towards real fairness.”

“For years we have heard complaints from callers to our legal and National Debt Helplines, stories of people tricked into dodgy deals, trapped into paying for services they don’t need, spending hard-earned cash on goods and services that turn out to be junk.

“We will be looking closely at these draft laws to make sure they fulfil their promise to consumers. We want to ensure that unfair, harmful practices we hear about on our frontlines – like deceptive ads and high-pressure sales– will be covered. But we are hopeful the reforms will drive better business behaviour that helps all consumers and especially people experiencing vulnerability,” Ms Tonkin said.

Consumer Policy Research Centre (CPRC) research has demonstrated the scale of the problem:

• 75% of Australians have struggled to cancel a subscription, and 1 in 10 gave up and continued paying.
• 83% have been negatively affected by digital design tactics (“dark patterns”) that steer people into choices that are not in their best interests.
• Deceptive online practices cost Australians an estimated $46 million every year.
• 54% of recent car buyers reported faults, yet many did not pursue their rights due to the complexity, cost and stress involved.
  Quote attributable to Erin Turner, CEO, CPRC:
  “This reform is a much-needed boost to our consumer protections, bringing them in line with Europe, the US and many other countries. If successful, these reforms will mean Australians can trust businesses will treat them with fairness and respect.
  “We know that unfair business practices are costing Australians money. Subscription traps alone, where companies make it easy to sign up but very hard to cancel, cost Australians over $46 million a year.” Quote attributable to Andy Kelly, Director of Campaigns and Communications, CHOICE:
  “CHOICE strongly supports reforms to stamp out some of the unfair tricks and traps used by many businesses to extract money from consumers. We hope that these new consumer protections will put the brakes on the race to the bottom we’ve seen big businesses engaging in at a time when so many people are struggling to make ends meet.”

  ENDS

Media contact:  Mark Pearce  mark@consumeraction.org.au  Tel: 0413 299 567