Hidden fees, subscription traps among unfair practices to be targeted in consumer law reform

A crackdown on devious hidden fees, difficult-to-cancel subscriptions and false claims that a customer only has a “limited time” to buy a product are part of a raft of Consumer Protection changes the Federal Government is promising.

On Tuesday, Prime Minister Anthony Albanese and Treasurer Jim Chalmers flagged consumer law reform, claiming “dodgy practices” — used in the concert, hotel and airline industry — were making the cost-of-living crisis worse.

Among the practices targeted will be hidden fees added during the purchasing process, making cancelling a paid subscription confusing or challenging, and “dynamic pricing,” when the cost changes throughout the transaction process.

The announcement comes as the parent company of Ticketmaster, Live Nation, faces a potential lawsuit from customers who claim the company increased the cost of concerts and sporting events as they became more popular.

The tactic — which has also been used by the company’s rival Ticketek — was employed in selling tickets to the Australian Open, Formula One Grand Prix and Green Day concerts, the ABC reported.

The Government will also look at stopping companies hiding information from customers, or falsely claiming a product is about to sell out and that they have a limited time to purchase.

Businesses that make themselves difficult to contact when a customer has a problem and who require customers to set up an account with unnecessary information are also in the Government’s sights.

A consultation paper has been released and is now open for feedback, with the Treasury Department tasked with examining how the changes can be implemented in law.

Actions taken are set to include specific bans on unfair selling tactics.

The consultation paper proposes penalties for businesses — including online businesses — that refuse to provide a repair, replacement or refund for a product as required by law.

The final proposals are set to be unveiled in the first half of next year.

“Whether it’s traps that make it difficult or confusing to cancel a subscription, hidden fees and charges at different stages of a purchase, deceptive or manipulative practices online or making it difficult for people to report problems with their products or services, we’re going to change the rules,” Dr Chalmers said.

“Most businesses do the right thing by Australians and they’ve got nothing to worry about.

“This is all about cracking down on dodgy deals to save Australians money if we can, and where we can.”

Mr Albanese said the announcement should put dodgy businesses “on notice”.

The Treasurer this week also said the Government was prepared to ban debit card surcharges by the start of 2026, subject to reviews by the Reserve Bank.

Money collected from the charges — which range from less than 0.2 per cent to more than 2 per cent — has grown sharply as cash is used less often.

But Shadow Treasurer Angus Taylor told Sky News on Tuesday the debit card announcement was “smoke and mirrors” from a Government that had failed to deal with the major cost of living challenges families were facing.

“We see these thought bubbles constantly from Labor. It’s all politics. It’s not dealing with the underlying problem,” the Liberal MP said.