Efforts against dodgy business practices begin – Australian Associated Press

Hidden fees for online purchases or large price increases for products such as concert tickets due to demand are in the federal government’s line of fire.

The public consultation on a proposal to ban dodgy trading practices starts on Friday, as the government looks to ban methods that trick customers or impose extra costs.

Tactics such as dynamic pricing, where the cost of a product increases during a sale as more people want to buy, will be among the practices that will soon be banned.

Drip pricing will also be included in the crackdown, adding mandatory fees on top of online purchases, making the price much higher than originally advertised.

The government will also look to ban subscription traps, where services make it difficult for customers to unsubscribe.

As part of the consultation document, the government will consider whether countdown timers at online retailers manipulate or overwhelm customers into making a purchase, or whether cancellation processes are too difficult to navigate.

Practices where services force customers to sign up and provide personal information before making a purchase will also be investigated.

Financial Services Minister Stephen Jones said customers deserved not to be abused.

“The Albanian government is putting an end to the tricky tactics companies use to rip off Australians. It is deceptive and unfair,” he said.

“There will not be a consumer in the country who has not experienced the unfair trade practices we intend to ban, such as trying to cancel a subscription that is easy to sign up for but impossible to cancel.

“This will be welcome news for people who will save time and money if these practices are banned.”

Erin Turner, CEO of the Consumer Policy Research Center, said the practices were causing significant harm.

“Our research shows that 75 percent of Australians have experienced negative consequences when canceling a subscription, with far too many companies making it easy to sign up but far too difficult to stop paying,” she said.

“A comprehensive law against unfair trade will help save money, protect against manipulative designs and support Australians in making informed choices.”