It’s a story that’s all too familiar. You sign up for a free trial or a cheap subscription, and before you know it, you’re stuck paying for months you didn’t intend. The federal government has finally had enough. A new crackdown on so-called “subscription traps” and “drip pricing” is on the way — and it could change the way Australians pay for everyday services.
The Fight Against Subscription Traps
The federal government has announced plans to ban what it calls “subscription traps,” sneaky practices that make it hard for consumers to cancel memberships or subscriptions. Assistant Minister for Competition Andrew Leigh confirmed that Labor will introduce legislation to end the frustrating cycle that costs Australians around $46 million a year.
“Many people have reported problems cancelling a gym membership or online service,” Leigh said and reported by 9News, pointing to examples where people could sign up instantly online but were forced to call a phone number or wait 28 days to cancel. The new law would require companies to make cancelling as simple as signing up.
It’s a rule that sounds like common sense, but for many consumers, it’s been a long time coming. Anyone who’s spent hours on hold or gone through a maze of menus trying to cancel a subscription knows how exhausting — and expensive — it can be.
Hidden Costs Under Fire
The reforms will also target “drip pricing,” another irritating consumer issue where prices climb during checkout thanks to hidden fees. It’s the kind of practice that leaves you shaking your head after a purchase — a concert ticket advertised at $89 suddenly costs $129, or that “cheap” internet plan turns out to have an unavoidable $79 fee added at the last step.
Leigh said these tactics mislead shoppers and make it difficult for honest businesses to compete. “Firms that don’t engage in drip pricing are being undercut by rivals who offer a beginning price that isn’t actually the ending price,” he explained.
Leveling the Playing Field
While subscriptions have become part of modern life — from streaming platforms to fitness apps — consumer advocates have long warned that the system is unfair. Many companies rely on customers forgetting or giving up before they manage to cancel, quietly profiting from confusion.
The government’s upcoming legislation aims to restore balance by ensuring transparency and fairness. Leigh summed it up simply: “If you can’t cancel a subscription through the same process you signed up, then perhaps there’s a subscription trap going on.”
A timeline for the reforms is expected soon, but for millions of Australians fed up with sneaky charges, relief may finally be on the horizon. It’s a rare moment when Canberra takes on everyday frustrations — and this time, it looks like the government might just be listening.
