Guides · Consumer law

Australia just banned unfair trading. Your website has until 1 July 2027.

In early July 2026, Parliament passed a new law banning subscription traps, hidden checkout fees and manipulative online design. It takes effect on 1 July 2027. Here's what it actually covers, what's already law today, and what to check on your own site — in plain English.

What just happened

On 1 April 2026 the federal government introduced the Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026, describing it as a crackdown on "business tactics that rely on confusion, design tricks, needless friction or sheer consumer exhaustion" (Treasury media release, 1 April 2026). The Bill passed both Houses of Parliament in early July 2026.

The important part for you: the new rules do not apply yet. They take effect from 1 July 2027, giving every Australian business a twelve-month window to review how their website sells, prices and signs people up (Ashurst). That's not a reason to relax — it's the reason this is the right month to look, while changes are cheap and unhurried.

1 April 2026
Introduced
Bill introduced to Parliament as part of a wider consumer-law reform agenda.
July 2026
Passed
Passed both Houses in the first days of July 2026. It is now law — with a delayed start.
1 July 2027
Takes effect
The date the new prohibitions start applying to your business.

The three things it targets

The law does three concrete things, and each one lives on a page of your website. For each: what it is, why it matters to your business, and how to get ahead of it.

1. Subscription traps

What it is. Services that are easy to join and deliberately hard to leave — buried cancellation options, cancellation only by phone when sign-up was one click, or automatic renewals that arrive without warning. The law doesn't ban subscriptions; it targets the trap, not the model (SmartCompany).

Why it matters to your business. If you sell anything on a recurring basis — memberships, retainers, boxes, software, classes — your renewal and cancellation flow is now regulated territory. Breaches will sit under the Australian Consumer Law's civil penalty regime, and the government has raised maximum penalties under competition and consumer law to $100 million precisely so they can't be treated as a cost of doing business (Treasury). No small business will face anything like that ceiling — but the same regime scales down to penalties that would still hurt badly.

How to get ahead of it. Cancel your own subscription this week, from your phone, as a customer would. Count the clicks against sign-up. If cancelling is meaningfully harder than joining, that gap is the thing to fix. Then check that renewal reminders actually go out before you charge — legal commentators expect clear disclosure, renewal notices and easy cancellation to be the practical baseline (Gilbert + Tobin).

2. Hidden fees and drip pricing

What it is. "Drip pricing" is when the price grows as the customer moves through checkout — a card surcharge here, a booking fee there — so the total only appears at the final screen. The new law requires businesses to be upfront about whether transaction-based charges apply and whether the displayed price includes them (Gilbert + Tobin).

Why it matters to your business. Beyond the legal risk, drip pricing is where carts go to die — the final-screen surprise is a classic abandonment trigger. Fixing it is one of the rare compliance jobs that usually improves conversion rather than costing it.

How to get ahead of it. Walk your own checkout and write down every fee, surcharge and add-on, and the screen where each first appears. Anything that first shows up at the last step should move to where the price is first displayed. If you pass on card surcharges, say so next to the price — not next to the Pay button.

3. Manipulative design — "dark patterns"

What it is. The Bill adds a general prohibition on conduct that manipulates a consumer, or unreasonably distorts the environment in which they make a decision, where that causes (or is likely to cause) detriment (Gilbert + Tobin). In website terms: countdown timers that aren't real, "only 2 left!" that isn't true, pre-ticked boxes, and designs that nudge people toward choices they didn't mean to make.

Why it matters to your business. This is the part with the fuzziest edge — conduct that's technically lawful today could be captured if it manipulates decision-making. And the regulator is already looking in this direction: the ACCC has named manipulative conduct in the digital economy among its 2026–27 compliance and enforcement priorities (Norton Rose Fulbright).

How to get ahead of it. The honest test is simple: is the thing on the screen true? If a timer restarts on refresh, remove it. If stock counters aren't fed by real stock, remove them. If a newsletter box is pre-ticked, untick it — that one isn't even a 2027 problem, because under the Spam Act consent already has to be an active choice today.

Most of this law is aimed at businesses that win by confusing people. If your website says true things, shows the whole price early, and lets people leave as easily as they arrived — you're most of the way there already.

What's already law today

It would be a mistake to file all of this under "2027 problem." Several close cousins of these rules are in force right now:

One more development worth knowing about: the government has also been consulting on extending these unfair-trading protections to small businesses as the protected party — covering situations where a larger company uses the same tricks against a smaller one (Gilbert + Tobin). If that proceeds, this law may end up protecting you as often as it obliges you.

A 20-minute self-check for this week

01

Cancel your own subscription

If you sell anything recurring, cancel it yourself on a phone. If leaving is much harder than joining, that's your first fix.

02

Map every fee to the first price a customer sees

Walk the checkout. Any fee that first appears at the final screen moves forward to where the price is first shown.

03

Check renewal reminders actually send

If customers are charged on renewal without a heads-up, add one. Don't assume your platform does it — test it.

04

Untick every pre-ticked box

Marketing sign-ups, add-ons, extras. Active choice only. This one is already the rule today, not in 2027.

05

Verify every urgency claim is true

Timers, stock counters, "selling fast" banners. If it isn't fed by something real, remove it.

06

Re-read your refund wording

Look for "no refunds" and "all sales are final." If it's there, have it professionally reviewed — this is a legal judgement, not a DIY job.

Where the line is

No scan — ours included — can rule on whether your design is "unfair." That's a legal judgement that depends on context, and the courts will spend years drawing the exact boundary. What an automated check can do is surface the raw material: whether your terms and refund policy exist, whether your refund wording contains the phrases the ACCC acts on, whether your sign-up boxes are pre-ticked, and whether customers can see delivery costs before they buy. Those are exactly the consumer-law checks AegorIQ runs today. Where something needs a lawyer's eye, we say so — we flag it, we don't rule on it.

And to be plain about the other side: as the Treasurer put it when the Bill was introduced, "most businesses do the right thing by Australians and they've got nothing to worry about" (Treasury). This law is aimed at traps. If you're not building any, the work above is a tune-up, not a rescue.

A place to start

Find out what your website says right now.

The free Scorecard includes the consumer-law basics from this guide — refund wording, pre-ticked boxes, terms and delivery disclosure — alongside its security and privacy checks. No obligation, results by email.