Key Points
- The government has outlined a range of legislative measures aimed at targeting "dodgy" practices.
- These practices include 'dynamic' pricing models, 'drip' pricing and 'traps' that make it difficult to cancel plans.
- Businesses that made it difficult for customers to contact them about problems would also be scrutinised.
Subscription "traps" that make it difficult and confusing to cancel ongoing contracts could soon be banned.
Online retailers who force customers to set up accounts and provide unnecessary information during transactions will also be targeted.
The government has outlined a range of legislative measures to try and stop businesses ripping people off.
These include 'drip pricing' tactics that add hidden fees as well as 'dynamic pricing', which impacts a product's cost during a transaction.
Deceptive and manipulative practices — such as claiming customers had limited time to buy a product — would also be outlawed.
Businesses that made it difficult for customers to contact them about problems with products and services would also be scrutinised.
Prime Minister Anthony Albanese said it was time to end "dodgy" business practices.
"Hidden fees and traps are putting even more pressure on the cost of living and it needs to stop," he said on Wednesday.
Anthony Albanese said the proposed measures would target "dodgy" business practices. Source: AAP / Dan Himbrechts
Treasurer Jim Chalmers said it was time to change the rules.
"Most businesses do the right thing by Australians and they've got nothing to worry about," he said.
"This is all about cracking down on dodgy deals to save Australians money if we can, and where we can."
How are subscription 'traps' affecting Australians?
In August, a report by the Consumer Policy Research Centre found three in four Australians had felt the frustration of unsubscribing.
Nearly half said they had spent more time than expected trying to cancel a subscription.
Chandni Gupta, the centre's deputy chief executive and digital policy director, argued companies intentionally made it difficult for people to cancel their subscriptions.
What is dynamic pricing?
Dynamic pricing is a practice where prices for products — such as tickets to events — fluctuate based on consumer demand.
The issue came into the spotlight recently after a portion of pre-sale tickets to American rock band Green Day's Australian tour reached as high as $500 under dynamic pricing by Ticketmaster.
Ticketmaster has defended the practice — which it calls 'in demand' tickets, saying it gives fans "fair and safe access to sought-after seats at market-driven prices". It also says it enables "artists and other people involved in staging live events to price tickets closer to their true market value".
The practice has also been controversial in the United States, United Kingdom and other countries.
Dynamic ticket pricing was recently in the headlines after a portion of pre-sale tickets to Green Day's Australian tour reached as high as $500. Source: Getty / Juan Naharro Gimenez/Redferns
The proposed changes follow announcements on supermarket prices and , as the government builds an argument around cost-of-living relief ahead of next year's federal election.
The government has released a consultation paper on better protections for customers and small business owners under consumer laws.
It wants feedback on introducing penalties for suppliers who refuse to provide repairs, replacements or refunds.
It can be hard to secure a solution under existing rules, particularly when engaging in the digital economy. The changes would empower the consumer watchdog and state and territory agencies to issue fines and penalties.
