Australia To Crack Down On Deceptive Business Practices

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Subscription Traps,Drip Pricing,Dynamic Pricing

The Australian government is set to introduce new legislation aimed at curbing deceptive business practices, including 'subscription traps' that make it difficult for customers to cancel contracts and 'drip pricing' tactics that add hidden fees.

Subscription "traps" that make it difficult and confusing to cancel ongoing contracts could soon be banned. Online retailers who force customers to set up accounts and provide unnecessary information during transactions will also be targeted. The government has outlined a range of legislative measures to try and stop businesses ripping people off.

Chandni Gupta, the centre's deputy chief executive and digital policy director, argued companies intentionally made it difficult for people to cancel their subscriptions. Dynamic pricing is a practice where prices for products — such as tickets to events — fluctuate based on consumer demand.

 

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