October 16th 2024.
Businesses in Australia have been taking advantage of consumers through various tactics deemed "unfair" by the government. However, these practices will soon be outlawed as Prime Minister Anthony Albanese announced today that the Australian consumer law will be updated after consultations with Treasury. This move aims to protect consumers from being ripped off by businesses engaging in dodgy practices.
Albanese stated that businesses should be put on notice for their unfair trading practices. He also expressed concern over hidden fees and traps that put pressure on the cost of living, and emphasized the need to stop them. One of the tactics that will be banned is dynamic pricing, where the cost of something, such as concert or event tickets, increases with demand. For instance, tickets for Green Day's upcoming tour were priced at $500 due to this practice. The Australian Open and Australian Grand Prix will also implement this strategy in the future.
Another tactic that will be outlawed is "drip pricing," where customers are surprised with extra costs, such as handling fees, during the later stages of a purchase. Subscription traps will also be banned, which are confusing and arduous steps that make it difficult for consumers to cancel their subscriptions. These tactics were brought to light by an investigation by ABC's Four Corners into Ticketmaster's parent company Live Nation.
Treasurer Jim Chalmers stated that the government aims to change the rules to prevent businesses from using deceptive or manipulative practices online, making it difficult for customers to report problems, or including hidden fees and charges at different stages of a purchase. He also reassured that honest businesses have nothing to worry about, and this move is to protect consumers and save them money.
The ban's implementation date has not been announced yet. The practices that will be banned include requiring consumers to set up an account and provide unnecessary information for online purchases, deceptive online practices, and making it difficult for customers to contact the business when they have a problem with their product or service. These changes will ensure a fair and transparent trading environment for consumers.
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