The Hon Dr Andrew Leigh MP
Assistant Minister for Productivity, Competition, Charities and Treasury
Unfair Trading Tricks And Traps To Be Banned
Thursday, 2 July 2026
The Albanese Government is continuing its strong track record of standing up for consumers, delivering one of the most significant strengthening of the Australian Consumer Law since it was created.
Following passage of the Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 in Parliament today, unfair trading practices and subscription traps will be banned from 1 July 2027.
Australians know exactly what these reforms are about because they have lived it. Whether it’s spending half a day trying to exit a subscription that took 30 seconds to sign up, being slugged with last‑minute ‘service’ and ‘handling’ fees at checkout that weren’t previously disclosed, or being nudged and steered by online design features into decisions they wouldn’t otherwise make. Australians have had a gutful of these practices that waste their time, drain their wallets and undermine genuine choice.
We also know that the majority of businesses, especially small businesses, do the right thing and treat their customers fairly. These reforms back those businesses, ensuring they aren’t undercut by competitors who rely on tricks, manipulation and unnecessary complexity.
There will be a 12-month period before the new law starts, which will provide time for businesses to prepare. To support a smooth transition, we have provided additional funding to the Australian Competition and Consumer Commission to deliver guidance and education to help businesses understand their obligations and get it right from the outset.
The Government is advancing a comprehensive approach to addressing unfair trading practices, making clear that there should be no gaps in consumer law that allow unscrupulous businesses to exploit consumers. Consultation is already underway on extending protections to small businesses and franchisees, with submissions open until 10 July. The Government is also working with the states and territories and the Australian Securities and Investments Commission to explore further alignment of protections within the financial services sector.
We thank stakeholders for their constructive engagement throughout the consultation process, including consumer groups and businesses, and acknowledge the advocacy and support of the Australian Competition and Consumer Commission and State and Territory Consumer Affairs Ministers in helping shape this reform.
The Albanese Government’s ban on unfair trading practices is part of Labor’s wider agenda to make markets fairer, boost competition and give Australians a fair go:
- We’ve banned price gouging by Coles and Woolworths.
- We’ve increased penalties ten‑fold to $100 million, making clear that breaching consumer and competition law is not a line item on a balance sheet, but a serious issue with serious consequences.
- We’ve provided the Australian Competition and Consumer Commission an additional $67.7 million in funding over four years for increased enforcement of our competition and consumer laws.
- We’re consulting on options to strengthen the Unit Pricing Code, tackle shrinkflation, and improve price and loyalty program transparency for shoppers.
- We’re reforming non‑compete clauses and restrictive employment terms to improve job mobility and build a more dynamic economy.
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