Cassandra Fernando (Holt, Australian Labor Party) Share this | Hansard source

I rise today in support of the Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026. This legislation is an important milestone in our nation's journey towards a fairer and more transparent market. At its core, this is a bill about the basic integrity of the daily interactions between Australians and the businesses they rely on. It is about the fundamental principle of fairness in the everyday decisions Australians make when they buy a ticket online, compare prices, start a free trial, sign up to a service or try to cancel something they no longer use. In all of those moments, Australians should be able to rely on a basic standard of honesty and clarity. They should not have to navigate a maze of fine print. They should not need to reach the final step of a digital checkout, only to be hit with extra compulsory fees that were never disclosed at the start. And they should not have to battle a deliberately confusing website just to stop paying for a service they no longer want.

These experiences are familiar to too many Australians. A person sees one price advertised, but, by the time they reach the checkout, the final amount is higher. Someone signs up to a free trial and later realises they have been rolled into an ongoing payment. Someone tries to cancel a subscription, but, instead of a clear and simple process, they are sent through page after page of hurdles, offers and endless questions. For many people, this is not just frustrating; it costs money, it wastes precious time, and it fundamentally damages trust.

In my electorate of Holt, families are already watching every single dollar. They are comparing grocery prices, managing rent or mortgage payments, checking bills and doing everything possible to make the household budget stretch until the next payday. When budgets are tight, a few dollars in a hidden fee, another monthly charge for a service they try to cancel or an automatic renewal they were not properly reminded of isn't just an annoyance; it's a financial hit. Those costs add up for students, for families, for pensioners and for our small businesses.

This is why this bill is so necessary. The Albanese Labor government is amending Australian Consumer Law to introduce an economy-wide prohibition of unfair trading practices. In simple terms, businesses will not be allowed to manipulate customers or unreasonably distort the environment in which they make decisions. We are not saying businesses shouldn't be successful. On the contrary, we want Australian businesses to thrive. We want them to advertise freely, promote their products and compete fiercely, but that competition must be based on the things that actually matter—price, quality, service and value—not on who's the best at tricking a customer, who can hide their fees the longest or who can make their cancellation button the hardest to find. This bill draws a firm line between clever marketing and predatory manipulation. Australian Consumer Law has served us well, but the world has changed. The way we shop, compare and subscribe today is vastly different from 20 years ago. This bill modernises our legal framework so it can respond to the harmful conduct of today and remain flexible enough to deal with the emerging tactics of tomorrow.

Let's look specifically at the subscription economy. Subscriptions are now a staple of modern life. We subscribe to news, music, fitness apps, meal kits and software. When these models are clear and fair, they provide great convenience. Many businesses already do the right thing. They send reminders, they make the price obvious, and they make it easy to leave. Those businesses have nothing to fear from this bill. In fact, they will benefit from a marketplace where their honest practices aren't being undercut by dishonest competitors. However, the Consumer Policy Research Centre has provided us with some sobering statistics. Three in four Australians with subscriptions have had a negative cancellation experience. One in 10 has literally given up on trying to cancel a service because it was too difficult, continuing to pay for something they don't want. This is not the market working; this is a subscription trap. This bill breaks those traps. It mandates that businesses clearly disclose the total cost, the renewal frequency and the cancellation process right at the start. It also introduces a click-to-cancel expectation. If you can sign up with one click, you should be able to leave with equal ease.

The bill also addresses the deceptive practice of drip pricing. This occurs when a consumer sees an attractive price at the start of the transaction, but mandatory charges appear later in the process. It might be a service fee, a booking fee, a processing fee or a transaction fee. The problem is not that a business charges a fee; the problem is when that fee is compulsory but not shown clearly upfront. By the time the consumer sees the real total, they may have already spent time choosing a product, entering details, selecting a seat or organising the booking. Many people then go ahead because they feel they have already invested the time. This is not a fair way to compare prices. This bill requires mandatory transaction based charges to be displayed alongside the base price from the very beginning. This ensures that the price you see in the search results is the price you actually pay. It allows for genuine price comparison, which is the engine of a competitive economy.

I want to address those who might claim this is an interventionist or antibusiness measure. In reality, this bill is pro good business. In my community of Holt, I see local cafe owners, family run trades and small retailers who work incredibly hard to build a reputation. They know that trust is their most valuable asset. They are upfront with their prices, they stand by their service and they work hard for every single customer. Those businesses should not be undercut by companies that rely on tricks, pressure or confusion. A strong marketplace should reward honesty, value and service. This is why consumer protection and competition policy go together. When people trust the market, they are more confident to compare, switch and try new providers. When people feel trapped or misled, they become cautious. They become less likely to switch and less likely to engage, and good businesses miss out.

This bill does not stand alone. It is a critical piece of the Albanese Labor government's broader agenda to ease cost-of-living pressures and make the Australian economy work for people, not the other way around. We have already strengthened penalties for anticompetitive conduct, ensuring that breaking the law is no longer just a cost of doing business; we have acted on unfair contract terms, protecting small businesses and consumers from 'take it or leave it' contracts that are already heavily weighted against them; we have tackled shrinkflation and unit pricing, ensuring that, when the packet gets smaller, the consumer knows exactly what they are paying for; and we have made the Food and Grocery Code of Conduct mandatory, ensuring our farmers and suppliers get a fair deal from the major supermarkets. This bill is the next logical step in that journey.

The bill also takes a practical approach to implementation. The reforms will commence from 1 July 2027, giving businesses time to understand their obligations and to adjust their practices. The ACCC will provide guidance on how the new laws will operate. The government will review the subscription provisions after the first two years to make sure the protections are working as intended. That is the right approach. It gives consumers stronger protection and gives businesses time and certainty.

We are also looking into the future. We know that small businesses and franchisees often find themselves on the receiving end of unfair trading practices from larger entities. That is why the government will consult on extending unfair trading protections to small businesses, including those in franchising. We will also consider possible alignment in the financial services sector carefully and properly so consumers do not fall through the regulatory gaps.

This bill reflects a very Australian expectation: be upfront, be fair and do not make life harder than it needs to be. Australians are not asking for special treatment; they're asking for the basics. They want prices they can trust, they want subscription terms they can understand, they want the freedom to leave a service when it no longer serves them and they want to know that, when a business makes a promise, it will keep it. This bill gives that expectation the force of law. It gives the people of Holt and people right across our country back their time, more clarity and better protection for their hard-earned money. It is fair, it is practical and it is absolutely needed.

I acknowledge the work of the Assistant Minister for Productivity, Competition, Charities and Treasury, Dr Andrew Leigh, in bringing this bill before the House. This is practical, considered reform shaped by the evidence and the real experiences of Australian consumers. I commend this bill to the House.

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