Australia plans to ban “subscription traps” under new consumer laws backed by PM Anthony Albanese. Companies must make cancelling as easy as signing up, disclose key terms upfront, and send trial reminders. Hidden opt-outs and auto-renewals without notice will be banned, with penalties of up to AUD $100 million for violations.
Australian Prime Minister Anthony Albanese has announced a ban on subscription traps, the deliberate design tactics that make it easy to sign up for a service but frustratingly difficult to leave. In a post on X, Albanese was direct, "A subscription shouldn't be a trap." The move backs the Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026, introduced to parliament on April 1 by Assistant Competition Minister Andrew Leigh. Once passed, the reforms are expected to take effect from July 2027.
What service providers must now do
Under the new law, companies will be required to make cancelling a subscription just as straightforward as signing up. If a customer joined with a single click or online form, they must be able to leave the same way. Businesses will also need to be upfront about key terms before sign-up and send reminders before a free trial automatically rolls into a paid plan. Hidden opt-out options, buried cancel buttons and automatic renewals without clear notice will all be prohibited. Companies that breach the rules face fines of up to AUD $100 million.
Why it matters for everyday Australians
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