Australia cracks down on unfair trading practices: the key changes since consultation and what's next for business

On 1 April 2026, the Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Bill) was introduced in the House of Representatives. If passed, the Bill will apply from 1 July 2027.

The introduction of the Bill follows consultation on the exposure draft as we previously reported on here. Consistent with the exposure draft, the Bill introduces:

1. A general prohibition on unfair trading practices (UTP) towards consumers.
2. Stronger disclosure obligations around transaction-based charges to combat ‘drip pricing’.
3. New subscription contract requirements to target unfair subscription practices.

Key changes from the government’s consultation

The key changes from the government’s exposure draft include:

1. The general prohibition on UTPs: the new definition of UTP expands the regime by removing “unreasonably” from the “manipulation of a consumer” arm of the general prohibition on UTPs.
   1. New definition of UTP: the Bill clarifies clarifies that   (s 28B(2)), a person engages in UTPs if, in connection with supply of, or an offer to supply, goods or services to a consumer, the person engages in conduct that:
      1. manipulates the consumer; or
      2. unreasonably distorts the environment in which the consumer makes or is likely to make a decision; and

      causes or is likely to cause detriment (whether financial or otherwise) to the consumer.

   2. Removal of “unreasonably” in the “manipulation of a consumer” limb:  This change means any manuipulation that is not a legitimate or reasonable sales practice may be captured. The Explanatory Memorandum explains:
      1. What ‘manipulation’ is intended to capture: “Manipulation of a consumer is intended to capture wrongful interference with a consumer that results in a change in the consumer’s behaviour, decision-making or action that is against the consumer’s interests. It may involve the exploitation of common cognitive or behavioural biases and is not intended to require dishonesty. Manipulation of a consumer is also not intended to capture legitimate, reasonable or generally accepted marketing or sales practices.” [1.25]
      2. Dark patterns are a particular risk: “While conduct in contravention of the general prohibition may be online or offline, the first limb of the definition of unfair trading practices is intended to address conduct that involves the use of ‘dark patterns’ in digital interfaces, which can manipulate a consumer or unreasonably distort the environment in which a consumer makes, or is likely to make, a decision. These tactics are typically aimed at benefitting the person supplying or offering to supply the relevant goods or services by nudging or pressuring consumers into unintended actions, often without the consumer’s full awareness.” [1.30]
2. Drip pricing: There are limited clarifying changes to the drip pricing provisions:
   1. Minor clarifications to requirements to display: the Bill clarifies that businesses must display whether the transaction-based charge applies, and whether or not the base price displayed includes transaction-based charges. The Bill also notes that the base price and the information required to be displayed could be different at different stages of the purchase process.
   2. Clarifications to definition of transaction-based charges: the new s 48A(7) specifies that a charge (or part of a charge) is a transaction-based charge if:
      1. it is or may be payable by the purchaser for the supply of the goods or services;
      2. it is not an amount payable for the goods or services themselves; and
      3. it is, or would be, payable at the same time as an amount payable for the goods or services themselves.
   3. Other clarifications: the new ss 48A(9) and (10) confirm that regulations may prescribe additional charges and that s 48A does not limit s 48 (the existing single price requirement).
3. Subscription contract requirements: the detailed and specific tests and limbs in the exposure draft are replaced by a new definition of subscription contracts and a principles-based requirement to give information rather than specific lists of content. The specific information requirements are likely to be set out in regulations rather than the legislation, noting that specific information requirements have been replaced with references to requirements that are ‘prescribed’ for the purposes of these sections.
   1. New definition of subscription contracts: according to the new s 48B, a contract is a subscription contract if it provides for an indefinite period (s 48B(2)), fixed period (s 48B(3)), initial free period (s 48B(5)) or initial discount period (s 48B(6)) and is not an excluded subscription contract.
   2. Narrower list of excluded subscription contracts: a contract for supply of a public utility and a contract for supply of prescription healthcare products are no longer listed as excluded subscription contracts.
   3. Deletion of content of the statement: the list of matters that must be contained in the statement has been deleted. Previously, the exposure draft required statements to specify that the contract would be for a subscription, if the contract would be for a fixed term or indefinite term (if applicable), or if the contract would have a free trial period or promotional period.
   4. Requirement to give information: the requirement in s 48E now applies to all suppliers of goods or services under subscription contracts, replacing the exposure draft's detailed, contract-specific disclosure requirements with a principles-based approach. Specific information requirements will be prescribed by regulation.
   5. Ending subscription contracts: suppliers of goods or services under a qualifying subscription contract must ensure that every method available to the subscriber to end the contract is easy to find, straightforward, and requires only steps that are reasonably necessary. This strengthens the exposure draft, which only required the supplier to provide a way to end the contract. The new s 48F(2) provides that s 48F applies where the subscriber enters the contract online or the supplier provides an online means of entering into a subscription contract for the same kinds of goods or services.

Review of the regime: The new s 21 provides for the Commonwealth Minister to cause a review of the regime within 2 years.

Implications and next steps

The reforms take effect from 1 July 2027. Once enacted, these reforms will increase the compliance burden on consumer-facing businesses selling in Australia. Businesses will need to review their selling practices to ensure they meet the new disclosure obligations and avoid breaching the UTP prohibition. In practice, this means reviewing booking and customer onboarding processes, updating terms and conditions, assessing cancellation pathways, and ensuring online interfaces do not create unreasonable pressure or obstruction.

In line with the  Australian Competition and Consumer Commission’s (ACCC) Enforcement and Compliance Priorities for 2026-7, the ACCC expects businesses to take proactive steps to ensure compliance and awareness of obligations at all levels within businesses, especially among staff in customer facing roles.

Submissions on the exposure draft closed on 23 February 2026, and the Bill has since moved quickly through Parliament. The Bill is not currently scheduled for debate in the Senate this week and the next Senate sitting is 12-14 May 2026. We will continue to report on any further developments.