January 3rd 2025.
In response to widespread customer frustration, the government has announced plans to crack down on deceptive trading practices. Concert ticket vendors will no longer be allowed to sneak in hidden fees, and gyms and streaming services will be required to make it easier for customers to cancel their memberships.
The government is taking action on the rising cost of living, but skeptics are questioning whether this is just empty promises. As many people make New Year's resolutions to improve their health, education, or entertainment, experts are warning them to be cautious before signing up for any subscriptions.
One common trap is the free trial that automatically turns into a paid subscription if not cancelled in time. According to Angus Kidman, editor at large of Finder, these conditions are often buried in the fine print and go unnoticed by most of us. A survey found that three quarters of Australians have had a negative experience trying to cancel a subscription, with many feeling pressured into keeping a service they no longer wanted.
Kidman emphasizes that cancelling a subscription should be a simple process, without having to navigate through endless phone options or hunt for a hidden link in an email. The Australian Competition and Consumer Commission chairperson, Gina Cass-Gottlieb, agrees and notes that the problem lies in the fact that these practices are not currently prohibited.
In response, the government is proposing new laws to address these issues, including the notorious "drip pricing" strategy where additional fees are tacked on at the checkout stage of online purchases. Assistant Treasurer Stephen Jones condemns this as deceptive, misleading, and dishonest, and promises that it will become unlawful under the new legislation.
Currently, businesses can only be prosecuted if they have misled customers about a subscription. The proposed laws will shift the responsibility back to companies to ensure that lock-in contracts are clearly stated upfront. However, the government has not committed to implementing these changes before the upcoming election, causing frustration among the opposition.
Shadow Treasurer Angus Taylor urges the government to follow through on their promises, stating that they need to start taking action rather than just talking about it. In the meantime, customers can stay informed and protected by downloading the 9News app, which provides the latest news updates and notifications on breaking news, sports, politics, and weather. It is available for download on the Apple App Store and Google Play.
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