Overview of the Unfair Trading Practices Bill 2026

On 1 April 2026, the Australian Government introduced the Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Cth) (Bill) to amend the Competition and Consumer Act 2010 (Cth) (CCA) and Australian Consumer Law (ACL).^[1]  If passed, the reform will take effect on 1 July 2027.  The Bill’s amendments aim to protect consumers from manipulative and disadvantageous conduct by businesses, reforming the existing legislation addressing unfair trading practices, drip pricing and subscription contracts.  This article discusses the proposed amendments and how they may impact businesses going forward.

Proposed amendments

The Bill proposes three (3) key amendments to the CCA and ACL, with the purpose of creating stricter requirements to protect consumers.  These amendments include:

• introducing a general prohibition on unfair trading practices toward consumers;
• enhancing drip pricing disclosure obligations; and
• imposing new requirements on businesses to prevent unfair subscription contracts and practices.

Prohibition on unfair trading practices

Unfair trading practices can include conduct engaged in by a business in relation to promotion, contracting, and payment.^[2]  This may include unfair contract terms, false or misleading claims, pressuring consumers, pyramid schemes, and other kinds of unconscionable conduct.^[3]

The Bill introduces a general prohibition on unfair trading practices toward consumers, with the purpose of limiting the manipulation of consumers and holding businesses more accountable.^[4]  The Bill seeks to introduce the following to enforce the prohibition on unfair trading practices:

• Inserts section 28B to the ACL, which introduces a definition of “unfair trading practices”.
• The first limb of what constitutes unfair trading practices, being conduct that “manipulates the consumer”, has been broadened by removing the “unreasonable” element.

The proposed definition of unfair trading practices is:

• “A person must not, in trade or commerce, engage in unfair trading practices.
• A person engages in unfair trading practices if, and only if, in connection with supply of, or an offer to supply, goods or services to a consumer, the person engages in conduct that:
• does or is likely to do either or both of the following:
• manipulate the consumer;
• unreasonably distort the environment in which the consumer makes, or is likely to make, a decision; and
• causes or is likely to cause detriment (whether financial or otherwise) to the consumer”.^[5]

[Bold is our emphasis]

The definition is intended to be exhaustive so there is not doubt as to what conduct will be an unfair trading practice.

Strengthening transparency requirements for “drip pricing”

Drip pricing occurs where a price is advertised at the beginning of an online purchasing process, prior to disclosing additional fees and charges.^[6]  This can cause consumers to spend more than they realise.  Historically, the ACL has addressed drip pricing through prohibiting misleading and deceptive conduct under section 18 of the ACL, and enforcing a single price requirement under section 48 of the ACL.

The Bill strengthens protections against drip pricing by requiring transparency of transaction-based charges.^[7]  The key changes can be summarised as:

• A requirement to disclose whether a transaction-based charge “will or may apply to the supply” under section 48A has been changed to require disclosure of whether it “is or may be payable”.^[8]
• A limb has been added to the definition of a “transaction based charge”.^[9]
• The express exclusion of charges payable in relation to the sending of goods from the supplier to the purchaser has been removed.
• A new section 48A(9) has been proposed, providing that the regulations may allow for a prescribed charge only in specified circumstances, along with different circumstances for different charges.^[10]

Protections against detrimental subscription contracts

Subscription contracts are contracts for the continuing supply of goods or services.^[11]

The Bill introduces protections against subscription practices that are detrimental to consumers and small businesses.^[12]

The key changes are as follows:

• Insertion of a ‘catch-all’ definition for subscription contracts.
• Narrowing the list of excluded subscription contracts under section 48C.^[13]
• Removal of the requirement to specify the kind of subscription contract.
• Simplified disclosure requirements, imposing that in all kinds of subscription contracts, certain information is to be provided.^[14]
• Broadened requirements for suppliers to provide a way for the subscriber to end the contact, only requiring them to take steps reasonably necessary.

Key takeaways

The proposed reforms to the CCA favour the consumer and leave more room for businesses to be held accountable.  Businesses must remain aware of the amendments proposed by the Bill, set to come into effect on 1 July 2027, to ensure they are fulfilling their relevant obligations and disclosure requirements.

The third reading of the Bill was agreed to by the House of Representatives on 14 May 2026.  This means that the Bill still needs to be agreed to by the Senate before being granted Royal Assent.  

We will provide updates on the Dundas Lawyers website as they develop.

Links and further references

Legislation

Competition and Consumer Act 2010 (Cth)

Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Cth)

Further information

If you need advice on how your business can comply with unfair trading practice obligations, contact us for a confidential and obligation‑free discussion.

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[1] Competition and Consumer Act 2010 (Cth) sch 2.

[2] ACCC, Unfair Trading Practices.

[3] ACCC, Unfair Trading Practices.

[4] Explanatory Memorandum, Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Cth) 1.13.

[5] Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Cth) sch 1 pt 1 s 7.

[6] ACCC, Jetstar and Virgin to pay penalties for misleading ‘drip pricing’ practices (7 March 2017).

[7] Explanatory Memorandum, Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Cth) 1.13.

[8] Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Cth) sch 1 pt 2 s 15.

[9] Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Cth) sch 1 pt 2 s 15.

[10] Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Cth) sch 1 pt 2 s 15.

[11] Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Cth) sch 1 pt 3 s 20.

[12] Explanatory Memorandum, Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Cth) 1.13.

[13] Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Cth) sch 1 pt 3 s 20.

[14] Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Cth) sch 1 pt 3 s 20.

Disclaimer

This article contains general commentary only.  You should not rely on the commentary as legal advice.  Specific legal advice should be obtained to ascertain how the law applies to your particular circumstances

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