Dark patterns, online traps and "confirm shaming" – new draft consumer laws on subscription practices and drip pricing

On 9 February 2026, Treasury announced a consultation on draft laws proposed to amend the Australian Consumer Law (ACL) to strengthen consumer protection by introducing targeted reforms on "manipulative" offers, "distorted" sales practices, subscription traps and drip pricing.

If adopted, the laws will start on 1 July 2027 and will mainly affect online traders but could also apply to other traders such as gyms, meal delivery services, and beauty treatment services.

This reform follows Treasury’s late‑2024 consultation on whether a general prohibition on unfair trading should be adopted. The Government has opted not to propose a general new law but instead to address a range of concerns which have arisen in online commerce. Other conduct raised in the 2024 consultation is thought to be sufficiently addressed by existing provisions under the ACL or would be addressed by the general prohibition.

General prohibitions on manipulation and distorting choice

The Bill would establish a general prohibition of trading practices towards consumers, prohibiting conduct that:

• does, or is likely to, "unreasonably manipulate" consumers or "distort the environment" in which they make, or are likely to make, a decision; and

• causes, or is likely to cause, detriment (financial or otherwise) (including wasted time and other negative impacts – especially relevant in the context of the digital economy where harm can be harder to quantify).

Examples of "unreasonable manipulation" include exploiting "cognitive or behavioural biases", using tactics such as false urgency, obstructions, or confusing, high-pressure sales methods – the Bill may have in mind online "ticking clocks", or "confirm shaming" where a consumer is unfairly made to feel guilty about a choice. These are examples of online "dark patterns", which the Bill appears particularly aimed at addressing.

The Bill could intrude into the psychology of the sales process by explicitly attempting to outlaw conduct that "nudges" consumers into transactions they "would otherwise be unlikely to pursue".

Critics of the Bill might respond that making spur-of-the-moment unplanned purchases is a common consumer experience. It is not clear how far the Bill is intended to change some traditional retailing techniques, and the explanatory statement to the Bill provides little assistance in drawing the line as to what is unlawful, asserting that the prohibition is aimed at behaviour that goes beyond "reasonable sales tactics and generally accepted marketing practices" – without clarifying what they are in the digital economy. It is further unclear when a webpage "overwhelms" consumers with "excessive or confusing" information, makes key details "hard to find or understand", or makes it "exhausting" to act on choices.

The Bill is currently directed at unfair trading practices towards consumers only, and not small businesses. Treasury proposes further consultation to determine how best to ensure small businesses are adequately protected.

A person who contravenes the general prohibition may be subject to a large civil penalty (consistent with the existing maximum penalty under the ACL) and other enforcement options such as refunds, corrective advertising, and compensation. The maximum pecuniary penalty for a company is the greater of: $50m, or 3 times the value of the benefit gained, or 30% of the company's adjusted turnover for the breach period (minimum 12 months) (if the value cannot be determined). For individuals, the maximum pecuniary penalty is $2.5m.

Subscription traps

The Bill introduces a specific regime for subscriptions to ensure informed decision‑making and to remove barriers to cancellation.

There are three types of subscription contracts (which are not mutually exclusive): fixed‑term subscriptions; promotional period or free trials; and indefinite term subscription contracts, as defined under the new laws. Certain contracts, leases, and licences are excluded from these laws, such as real property licences or hire-purchase contracts.

Under the new laws, a person who supplies, or offers to supply, goods or services under a subscription contract is required to:

• disclose key information about the contract when making the offer to supply those goods or services (including pricing and fees, renewal details, or steps to cancel); and

• notify subscribers of key information at certain points throughout the subscription, and provide an easy‑to‑find, straightforward way to end the contract. Distinct notification obligations will apply across the three categories of subscription contracts.

Depending on the context, the information must be disclosed legibly, prominently, and unambiguously, in close proximity to where the contract can be entered into, or as prescribed by the regulations.

Strengthened drip‑pricing rules

The draft Bill also seeks to strengthen protections against "drip pricing". This is to ensure buyers are aware of transaction‑based charges throughout the purchase process and can make informed decisions about whether to continue with a purchase.

Drip pricing is already unlawful under the ACL and the ACCC has taken a series of actions against various businesses. In June 2025, Dendy Cinemas paid a $19,800 penalty after the ACCC issued it with an infringement notice for allegedly breaching the ACL by failing to prominently display the total price, as a single figure, of movie tickets sold online, including the per ticket booking fee, until the final stages of the booking process.

If adopted, the new law would amend Part 3-1 – Unfair Practices of the ACL to require a person offering goods or services ordinarily acquired for personal, domestic or household use or consumption at a base price to disclose information relating to any applicable transaction-based charge. A transaction-based charge is any fee paid per transaction, or that could be paid per transaction (with exceptions such as optional charges, payment surcharges, duties/levies, and delivery fees).

An offer in an advertisement, poster, website, or in-app is sufficient to trigger the obligation. Verbal offers will not as there is no displayed base price.

If the obligation is triggered, four kinds of information must be disclosed.

1. The amount of the transaction‑based charge must be disclosed if it can be calculated when the base price is displayed. If it cannot be calculated, the calculation method must be disclosed.

2. It must be clear that the amount is a per‑transaction charge.

3. Whether the transaction based charge is applicable to the base price.

4. Whether the displayed base price includes the transaction based charge.