Australia’s New Unfair Trading Practices Bill 2026 Targets Subscription Traps, Drip Pricing
Following the ban on social media usage for children below the age of 16, Australia has now introduced a new legislation on April 1st, named the Unfair Trading Practices Bill 2026, which aims to put an end to subscription traps and drip pricing practices.
Read more about the update below.
Unfair Trading Practices Bill 2026 – Introduced (Australia)
As mentioned, the Unfair Trading Practices Bill 2026 has been introduced in the Australian Parliament and is expected to be passed by May, with its implementation likely to begin from July this year. The legislation mainly targets companies that offer easy sign-up processes, but make it difficult for users to cancel their subscriptions. It also addresses “drip pricing”, where the initial price shown to consumers increases at checkout after adding taxes and other charges.
Speaking about this, Assistant Competition Minister Andrew Leigh stated that the new measures will be actively monitored by Australia’s consumer watchdog, along with state and territory regulators. In a statement given to reporters in Canberra, he said, “There will be a lot of cops on the beat making sure that firms are doing the right thing,” and further added, “The expectation starts from today that firms will be complying with these new rules.”
A subscription shouldn’t be a trap.
That’s why we’re banning subscriptions that lock you in because they’re too hard to cancel. pic.twitter.com/dn7AirZpiq
— Anthony Albanese (@AlboMP) April 7, 2026
The legislation also includes provisions for strict penalties, with fines of up to AUD 100 million for businesses found violating consumer and competition laws. Adding to this, Australian Prime Minister Anthony Albanese shared in a statement on X that “A subscription shouldn’t be a trap. That’s why we’re banning subscriptions that lock you in because they’re too hard to cancel.”
What Will Be Affected?
It should be noted that the legislation does not ban any specific subscription service, but instead focuses on unfair “subscription traps” that make cancellations intentionally difficult. This includes practices such as complicated cancellation processes, hidden opt-out options, and automatic renewals without clear notice. Once implemented, the rules will apply across various sectors including gyms, streaming platforms, mobile applications, and other subscription-based services across the country.
Does India have anything similar to this?
While Australia is currently passing new laws, India already has enforceable rules under the Central Consumer Protection Authority (CCPA) and the Reserve Bank of India (RBI). In November 2023, the CCPA, acting under the Consumer Protection Act, 2019, announced the ban on “dark patterns”—deceptive designs in which companies make cancellation a “complex and lengthy process,” hide the cancellation button, or force you to provide payment details for a “free” trial. Additionally, drip pricing is also banned in India.
Apart from this, the Reserve Bank of India (RBI) has also issued directives under the Payment and Settlement Systems Act, 2007. As of October 2021, an early 24-hour pre-debit notification is required, which should also give a way to cancel or stop a subscription. As of 2025, transactions up to ₹15,000 (General) or ₹1 Lakh (Specific Categories: Mutual Funds, Insurance, Credit Card Bills) do not need an OTP; your pre-authorisation is more than sufficient.
