Australia Targets Subscription Traps: A New Consumer Protection Era

Australia's federal government plans to ban subscription traps and hidden fees, addressing tactics that complicate cancellation processes. These traps, affecting three-quarters of Australian subscribers, will be targeted by upcoming laws emphasizing fair trading. Similarly, other countries have enacted measures to protect consumers, highlighting the global issue of unfair subscription practices.

Melbourne, Dec 5 (The Conversation) – New federal regulations are on the horizon in Australia, aiming to curb prevalent 'subscription traps' that plague consumers. Announced by Assistant Minister for Competition Andrew Leigh, the proposed laws will prevent firms from ensnaring customers in convoluted, hard-to-cancel agreements.

Often likened to the 'Hotel California' effect due to the difficulty in leaving once signed up, these traps employ tactics such as extended cancellation timeframes and 'confirm shaming'. These practices exploit consumer uncertainty, effectively locking Australians into unwanted subscriptions.

Expected to undergo consultation by 2026, the proposed laws are part of broader reforms to address unfair trading. Australia's move mirrors existing protections in California and the EU, ensuring Australian consumers can manage subscriptions without undue hurdles.

(With inputs from agencies.)