Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Productivity, Competition, Charities and Treasury) Share this | Hansard source

I thank members who have contributed to this debate: the members for Page, Melbourne, Kooyong, Fisher, Maribyrnong, Mallee, Holt, Moreton, Griffith, Whitlam, Sturt, Forde, Barton, Bennelong, Hasluck and Brisbane. The breadth of the contributions really reflects the passion that so many members feel about cracking down on unfair trading practices, subscription traps and drip pricing. It reflects that energy, particularly on this side of the House, directed towards making the Australian economy more productive, more competitive and more dynamic.

The Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 strengthens the Australian Consumer Law in three important ways: by banning unfair trading practices, by addressing subscription traps and by strengthening drip pricing protections. Together, the bill ensures that consumers are treated fairly and that honest businesses, including small businesses, aren't disadvantaged by competitors who rely on tricks and complexity rather than value and service.

Some in this debate have questioned whether these reforms are necessary, but the evidence before us is clear and consistent. Years of research, consultation and enforcement experience show that there are gaps in the current law. Certain practices may not be clearly misleading and may fall short of the high bar of unconscionability, yet they still distort decision-making and cause real detriment to consumers. These are practices that quietly pressure, confuse or obstruct consumers, often through design, ensuring deception.

For Australians, that harm is experienced in very practical ways: time wasted navigating complex processes, fees revealed late in a transaction, subscriptions that are easy to sign up to but difficult to exit and a growing sense that markets are structured to wear them down. Over time, that erodes trust, and, when trust falls, competition and productivity fall as well.

That assessment is not contested among those who see these markets up close. The Australian Competition and Consumer Commission supports this bill, informed by its enforcement expertise and its work across consumer-facing markets. On the day the bill was introduced, 17 consumer organisations welcomed it, including national consumer advocates, financial counsellors, legal services and community organisations. They were the Consumer Policy Research Centre, the Consumer Action Law Centre, CHOICE, the Financial Rights Legal Centre, Mob Strong Debt Help, the Consumer Credit Legal Service, the Australian Communications Consumer Action Network, the Consumers' Federation of Australia, Energy Consumers Australia, Financial Counselling Australia, Financial Counselling Victoria, the Justice and Equity Centre, National Seniors Australia, Way Forward, West Justice, AMES Australia and the Western Australia Consumer Advocacy Network. The sheer breadth of support reflects a shared conclusion: these reforms respond to persistent, well-documented problems in everyday transactions.

The bill responds in a careful, proportionate, balanced way. These prohibitions don't ban advertising. They don't ban fees, subscriptions or innovation. They do not tell businesses how to market their products. They simply ensure that key information isn't obscured, that cancellation isn't obstructed and that competition takes place on its merits.

As set out in the decision impact statement, this package of reforms covering the general prohibition on unfair trading practices, subscription protections and strengthened drip pricing rules is expected to deliver net benefits to consumers and the economy by targeting conduct that causes the greatest harm while keeping compliance costs proportionate and manageable for business.

This bill is about drawing a clear line between fair competition and unfair manipulation. Most Australian businesses, especially many small businesses, already operate this way. For them, the changes will be modest. Good businesses shouldn't pay a price for doing the right thing.

The Australian Competition and Consumer Commission will play an important role in implementation. It'll provide practical guidance so businesses understand their obligations clearly and early. The intention isn't to catch businesses out; it's to set clear expectations supported by clear guidance so firms can comply with confidence. That certainty benefits everyone, firms and consumers alike.

These reforms sit within a broader competition and consumer agenda. Our government has delivered the most significant overhaul of Australia's merger laws in half a century. We're strengthening the unit pricing code and cracking down on shrinkflation so Australians can clearly see when product sizes fall and prices don't. We've increased funding for the Australian Competition and Consumer Commission to tackle misleading pricing and unfair practices. We've raised the maximum penalties under the Competition and Consumer Act from $10 million—when we reached office—to $100 million or three times the benefit gained by the breach or 30 per cent of turnover. This ensures breaches can no longer be dismissed by businesses as a mere cost of doing business.

Our government is scrapping non-compete clauses for workers earning under $183,000 to make it easier for people to move to a better job. We're revitalising national competition policy, backed by the $900 million National Productivity Fund to break down commercial and industrial planning and zoning barriers, to deliver more houses by removing barriers to the uptake of modern methods of construction and to build a more seamless national market for workers and goods.

I thank stakeholders, including business, industry groups, consumer advocates and legal academics, for their engagement.

Lastly, I want to thank again all those involved in the development of this bill, including officials from the Department of the Treasury, the Office of Parliamentary Counsel and the Australian Competition and Consumer Commission. The expertise and care shown by officials across the Australian Public Service have ensured these reforms are robust and balanced.

Australians shouldn't need a magnifying glass, a law degree and the patience of a saint to buy an everyday product or cancel a subscription. Markets work best when business success comes from offering a better deal, not designing a better trap. This bill helps ensure that, in Australia, firms prosper by serving consumers, not by outsmarting them.

I commend the bill to the House.

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