Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026: What Australian Businesses Need to Know Before 1 July 2027

On 9 February 2026, The Treasury released an exposure draft of the Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Bill), proposing significant reforms to the Australian Consumer Law (ACL).

If passed, the reforms will take effect from 1 July 2027 and are designed to strengthen consumer protections—particularly in the digital economy.

The proposed changes focus on:

• Introducing a general prohibition on unfair trading practices
• Strengthening protections against unfair subscription practices
• Improving protections against ‘drip pricing’.

These reforms will primarily impact businesses operating online, retail, or subscription-based models, including gyms, streaming platforms, meal delivery services, software providers, travel operators, and entertainment businesses.

Below is a detailed breakdown of what the Bill proposes and what it could mean for your business.

Background to the Bill

The exposure draft of the Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 signals a major shift in Australian consumer protection regulation. The reforms aim to address emerging concerns around digital marketing practices, subscription traps, and hidden fees that may mislead or disadvantage consumers.

If enacted, businesses will have until 1 July 2027 to ensure compliance.

General Prohibition on Unfair Trading Practices

A key reform proposed by the Bill is the introduction of a general prohibition on unfair trading practices.

Under the proposed provisions, a business must not engage in conduct that:

1. Unreasonably Manipulates Consumers

This includes conduct that does, or is likely to:

• Use false urgency
• Create obstructions to decision-making
• Employ confusing, frustrating, or high-pressure tactics
• Otherwise improperly influence consumer choices

2. Distorts the Consumer Decision-Making Environment

This may include:

• Creating an overwhelming or complex online environment
• Providing excessive or confusing information
• Making key information difficult to locate or understand
• Making it unclear how a consumer can proceed with their choice

3. Causes Consumer Detriment

The conduct must also cause, or be likely to cause, detriment, which may include:

• Financial loss
• Wasted time
• Other negative impacts

This broad prohibition is particularly relevant to businesses operating in the digital space, where website design, checkout flows, pop-ups, and automated renewals may be scrutinised more closely.

Unfair Subscription Practices: New Disclosure and Cancellation Requirements

The Bill also introduces specific protections for consumers entering into subscription contracts.

Mandatory Pre-Contract Disclosures

Businesses offering goods or services under a subscription contract must disclose key information, including:

• The subscriber’s payment obligations
• The period of the contract
• How the subscriber can end the contract
• Any notice requirements
• Details regarding renewal terms

Required Subscription Statement

Businesses must also provide a clear statement that:

• Confirms the contract is a subscription
• Specifies whether the contract is for a fixed or indefinite term
• Advises whether there is a free trial period
• Advises whether there is a promotional period

Ongoing Disclosure Obligations

Suppliers must also notify subscribers of key information at critical points throughout the subscription. These ongoing obligations apply to:

• Indefinite term subscription contracts
• Fixed term subscription contracts
• Free trial or promotional period contracts

The information required will vary depending on the contract type.

Easy and Straightforward Cancellation

Importantly, businesses must ensure that subscribers can end their subscription through a method that:

• Is easy to find
• Is straightforward
• Requires only steps that are reasonably necessary
• Protects the subscriber’s interests

This requirement directly addresses so-called “subscription traps” and complex cancellation processes.

Enhanced Regulation of ‘Drip Pricing’

The Bill also strengthens protections against “drip pricing”.

What is Drip Pricing?

‘Drip pricing’ refers to the sales tactic where a business advertises a low initial “headline” price and then gradually adds mandatory fees (such as service fees, booking fees, or taxes) during the checkout process.

This practice is commonly used in the travel and entertainment industries, but it can apply across many sectors.

Proposed Disclosure Requirements

Under the Bill, a business offering goods or services at a base price must disclose information about any applicable transaction-based charge, including:

• The amount of the charge, or if not calculable at the time, the method of calculation
• Whether the charge is a per-transaction charge
• Whether the charge will or may apply
• Whether the displayed base price includes or excludes the transaction-based charge

These requirements aim to ensure greater pricing transparency and reduce the risk of consumers being misled during the purchasing process.

Who Will Be Most Affected?

The proposed reforms will particularly impact businesses that:

• Operate e-commerce platforms
• Offer auto-renewing subscriptions
• Provide free trials or promotional offers
• Apply transaction-based charges
• Rely on digital marketing tactics to influence purchasing decisions

Industries likely to feel the strongest impact include:

• Gyms and fitness centres
• Streaming platforms
• Software-as-a-Service (SaaS) providers
• Meal delivery services
• Travel and ticketing businesses

Preparing for 1 July 2027: What Should Your Business Do?

If the Bill is passed, businesses should take proactive steps well before the commencement date.

You should consider:

• Obtaining legal advice on your obligations under the proposed amendments
• Reviewing and updating current business practices and internal policies
• Reviewing and amending subscription and service contracts
• Drafting and preparing compliant disclosure statements
• Auditing pricing displays and transaction-based charges

Early preparation will help minimise compliance risk and avoid potential regulatory scrutiny.

How We Can Assist

If you would like advice or assistance in relation to these proposed reforms or any commercial law matters, please contact:

• Justin Thornton, Accredited Business Law Specialist and Partner – jthornton@marsdens.net.au
• Rahul Lachman, Partner – rlachman@marsdens.net.au
• Phone: (02) 4626 5077

Our team can assist with compliance advice, contract reviews, disclosure drafting, and strategic risk management in preparation for the new regime.

Important Disclaimer

The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.