Hidden fees for online purchases or large price increases for products like concert tickets due to demand are in the firing line of the federal government.
Public consultation on a proposal to ban dodgy business practices will open on Friday, as the government looks to outlaw methods that trap customers or impose extra charges.
Tactics such as dynamic pricing, where the cost of a product rises during a sale as more people look to purchase, will be among the practices set to be banned.
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Drip pricing will also be included in the crackdown, where mandatory fees are added on top of purchases online, inflating the price well beyond what was originally advertised.
The government will also seek to ban subscription traps, where services make it difficult for customers to opt out.
As part of the consultation paper, the government will consider whether countdown timers on online sellers manipulate or overwhelm customers to make a purchase, or whether cancellation processes are too difficult to navigate.
Practices where services force customers to sign up and hand over personal details before making a purchase will also be examined.
Financial Services Minister Stephen Jones said customers deserved not to be taken advantage of.
“The Albanese government is putting a stop to the tricky tactics used by businesses to rip off Australians. It’s deceptive and unfair,” he said.
“There won’t be a consumer in the country who hasn’t had an experience with the unfair trading practices that we are planning to ban, like trying to cancel a subscription that is easy to sign up to but impossible to leave.
“This will be welcome news for people who will save time and money when these practices are outlawed.”
Consumer Policy Research Centre chief executive Erin Turner said the practices were causing considerable harm.
“Our research shows that 75 per cent of Australians have experienced a negative consequence when trying to cancel a subscription, with far too many companies making it easy to sign up but far too hard to stop paying,” she said.
“A general law against unfair trading will help save money, protect against manipulative designs and support Australians in making informed choices.”
