Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026; Second Reading

Laxale supported the bill as a measure to plug gaps in consumer law regarding subscription traps and drip pricing. Laxale argued that the legislation moves beyond case-by-case enforcement to prevent manipulative practices, such as making cancellation difficult or hiding fees until checkout. Laxale noted that maximum penalties under the Competition and Consumer Act would increase from $10 million to $100 million to ensure meaningful consequences for breaches.

Berry argued that the bill addresses the rise in online consumer problems by prohibiting conduct that exploits cognitive biases, known as dark patterns. Berry detailed how the legislation requires upfront disclosure of subscription terms and mandates reminder notices before free trials end or renewals occur. Berry emphasised that the reforms protect honest businesses from being undercut by competitors using deceptive tactics and contribute to broader government efforts to strengthen competition.

Clutterham stated that the bill complements existing consumer law by introducing a flexible prohibition on unfair trading practices that can adapt to technological changes. Clutterham explained that the legislation requires mandatory transaction fees to be displayed alongside base prices and ensures subscription cancellations are straightforward. Clutterham argued that the reforms do not paralyse business but create a fairer marketplace that encourages consumer participation and trust.

Fernando argued that the bill is essential for protecting consumers from financial hits caused by hidden fees and difficult cancellation processes. Fernando highlighted statistics showing that many Australians have negative experiences with subscription cancellations and that the bill mandates clear disclosure of costs and renewal terms. Fernando stated that the reforms reward honest businesses and are part of a broader agenda to ease cost-of-living pressures through stronger competition policy.

Holzberger linked the bill to the Labor Party's historical commitment to consumer protection, referencing the Trade Practices Act 1974. Holzberger argued that the legislation addresses modern manipulative tactics used by businesses, such as confusing unsubscribe buttons and misleading pricing. Holzberger noted that the government has increased funding for the Australian Competition and Consumer Commission and outlawed unfair contract terms to support these reforms.

Ambihaipahar argued that the bill restores trust in digital marketplaces by preventing businesses from exploiting the lack of personal interaction in online transactions. Ambihaipahar stated that the legislation introduces a principles-based framework to address emerging unfair conduct without stifling legitimate competition. Ambihaipahar emphasised that the reforms protect both individual consumers and small businesses entering into standard-form subscription contracts.

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Coffey argued that the bill restores fairness by banning unfair trading practices, specifically targeting subscription traps and drip pricing. Coffey cited Consumer Policy Research Centre data showing that three in four Australians with subscriptions have had negative cancellation experiences, costing approximately $46 million annually. Coffey stated that the reforms protect consumers from manipulation and support honest businesses by creating a level playing field. Coffey noted that penalties align with existing civil penalty settings and that the measures commence on 1 July next year.

Lawrence argued that the bill ensures honesty in pricing and processes, addressing issues raised by constituents in Hasluck. Lawrence noted that international regulators in the United Kingdom, United States, and European Union are already taking action against similar unfair practices. Lawrence stated that the reforms create a fairer playing field for honest businesses competing against those using deceptive tactics. Lawrence commended the bill for restoring fairness to the marketplace.

Jarrett stated that the bill modernises the Australian Consumer Law to address deception and trickery in online purchases. Jarrett cited research indicating that unwanted subscriptions cost consumers an estimated $971 million annually and that three in four Australians have had negative cancellation experiences. Jarrett explained that the bill introduces a general prohibition on unfair trading practices, requires upfront disclosure of mandatory transaction charges, and mandates easy cancellation processes. Jarrett linked these reforms to broader government actions, including increased ACCC funding and higher penalties for breaches.

Leigh argued that the bill fills gaps in current law where practices distort decision-making without being clearly misleading. Leigh noted that 17 consumer organisations and the Australian Competition and Consumer Commission support the reforms. Leigh stated that the bill does not ban advertising or fees but ensures key information is not obscured and cancellation is not obstructed. Leigh highlighted that maximum penalties under the Competition and Consumer Act have been increased to $100 million to ensure breaches are not treated as a cost of doing business.