New Australian laws targeting subscription traps and unfair trading practices
Best Practices
Sales
Operations
Small Business
Posted By - Court Sayer-Roberts
19 July, 2026
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Summary: New federal laws will ban a range of unfair trading practices, including subscription traps, hidden fees, drip pricing and manipulative online sales tactics. The reforms amend the Australian Consumer Law and are due to commence on 1 July 2027, giving businesses a 12-month transition period.
Why it matters: Small businesses that sell subscriptions, memberships, recurring services, software, online courses, booking services or digital products may need to review their customer sign-up, renewal, pricing and cancellation processes. The laws are designed to stop practices where customers can sign up easily but face unnecessary barriers when trying to cancel, or where extra fees are revealed late in the purchase process.
Who is affected: Businesses using subscription or recurring-payment models are most directly affected, including SaaS providers, gyms, wellness services, education providers, retailers, hospitality booking platforms and membership-based businesses. Some protections may also apply to small businesses as customers where they enter standard-form subscription contracts and meet employee or turnover thresholds.
Key dates: The laws passed Parliament on 2 July 2026 and are scheduled to begin on 1 July 2027.
Business takeaway: Before commencement, businesses should check whether subscription terms are clear upfront, renewal and price-change notices are adequate, unavoidable fees are disclosed early, and cancellation processes are simple and easy to find. Businesses with complex subscription or recurring-payment arrangements may wish to seek support from qualified legal or compliance advisers.
