Labor vows to stop consumer rip-offs
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The news: The consumer regulator will be given a wider remit to stop businesses from deploying "tricky tactics" such as hidden fees under a new plan by the Albanese government.
The context: Prime Minister Anthony Albanese and Treasurer Jim Chalmers will announce on Wednesday that the government will "address" a wide range of tricky business practices.
These include "subscription traps" that use arduous and confusing steps to cancel; "drip pricing" where fees are hidden or added later; "dynamic pricing" where a product's price changes during the transaction process; requiring consumers to set up an account and providing unnecessary information to make an online purchase; and making it difficult for a consumer to contact them.
Labor is under pressure from voters to do more about cost-of-living pressures, and is cracking down on businesses engaging in unfair trading practices.
From concert tickets to hotel rooms to gym memberships, Labor says Australians are fed up with businesses from engaging in unfair trading practices that make it difficult to end subscriptions or add hidden fees to purchases.
According to the government's plan, Treasury will consult on the design before it legislates a general prohibition on unfair trading practices.
The changes will empower the Australian Competition and Consumer Commission (ACCC) and state and territory consumer protection agencies to issue infringement notices or pursue penalties for breaches of the consumer guarantee and supplier indemnification provisions of the Australian Consumer Law.
Following consultation, the Government will work with states and territories to settle a final reform proposal in the first half of 2025.
What they said: "We're taking strong action to stop businesses from engaging in dodgy practices that rip consumers off," Albanese said.
"Today's announcement puts businesses engaging in unfair trading practices on notice.
"Hidden fees and traps are putting even more pressure on the cost of living and it needs to stop."
Chalmers said: “We're taking important steps to ban unfair trading practices and ease the cost of living for Australians."
“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.
“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.”
The source: Treasurer's office
