Federal government promises crackdown on dodgy pricing tactics

ANTHONY ALBANESE QLD ELECTION

Prime Minister Anthony Albanese is promising to crack down on unethical practices towards consumers (AAP) Source: AAP / DARREN ENGLAND/AAPIMAGE

The federal government is moving to address dodgy pricing tactics like hidden fees and hard-to-cancel subscriptions. Businesses like gyms, airlines, online retailers and ticketing companies are in the spotlight, as the government looks to stamp out potentially harmful practices not already forbidden under Consumer Law.


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Subscription traps and hidden fees added throughout the checkout process - it's something some people have been forced to accept as normal.

"I think it's a little unfair but at the end of the day they have the power and you can't really do anything."

Dynamic pricing which sees the cost of goods like concerts tickets inflated based on demand.

And deceptive online practices which include time limits on purchases designed to overwhelm people.

Rosie Thomas is the spokeswoman for consumer group CHOICE.

She says these are unfair business practices taking advantage of customers.

"Consumers are incredibly frustrated by the range of sneaky tactics that businesses use to trick us to spend more money. Whether it's gym memberships that are impossible to cancel, dynamic online ticket pricing or the box that's pre checked that adds cost at the checkout sometimes without you noticing. These are all unfair business practices."

Now, the federal government is moving to make these tactics illegal.

But data from the consumer group suggests these are laws one in ten Australians thought were already in place.

And similar legislation is keeping businesses in the U-K, Europe and the U-S in check.

Prime Minister Anthony Albanese says he's prepared to implement this kind of legislation in Australia.

"We want to make sure there's transparency and these unfair practices and dodgy dealings are outlawed. That's why we're proving additional funding for the ACCC, that's why we're prepared to legislate This is a part of easing the cost of living for Australians."

But it won't be instant relief for those affected by the tactics, with the federal Treasury tasked with drawing up the plan with states and territories.

Federal Assistant Treasurer Stephen Jones says draft laws are expected to be ready in the first half of next year.

"Businesses don't have to wait for the government to change the law, they can their practices immediately. Surging pricing, that's not essential, that's a choice they make. Subscription traps, that's not essential, that's a choice they make. Drip pricing - that's not essential, that's a choice businesses are making. They're unfair to consumers and they have got to stop."

But before that improved regulation is legislated, Ms Thomas says consumers can still call out dodgy dealings through advocacy groups or even social media.

"We'd always encourage consumers to let CHOICE know what they're seeing if there are unfair business practices. They can also always take to social media because sometimes the public naming and shaming is all that businesses need to reconsider their practices and change what they're doing."



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