The reforms will expand the Australian Consumer Law by introducing a broad prohibition on unfair trading practices. This will capture conduct that manipulates consumers or distorts their decision-making where harm may result - going beyond existing misleading or deceptive conduct rules to focus on how pricing, disclosures and customer experiences are designed.

In practical terms, the Bill introduces three key changes:

• a new general prohibition on unfair trading conduct
• stricter requirements for the display of transaction-based charges (targeting drip pricing)
• additional obligations for subscription contracts, including clearer disclosures and simpler cancellation processes.

The proposed general prohibition is designed to capture conduct that manipulates consumers or unreasonably distorts the environment in which they make decisions, where that conduct is likely to cause detriment. This is broader than traditional misleading or deceptive conduct because it focuses not only on what a business says, but also on how it influences consumer behaviour through design, timing, pressure, friction or presentation.

For retail and eCommerce businesses, this could include practices such as online design features that steer customers toward a particular choice, make it harder to refuse optional extras, create unnecessary pressure, or present key information in a way that is unclear, overwhelming or difficult to act on. The Government has specifically linked the reforms to business tactics involving confusion, design tricks, unnecessary friction and consumer exhaustion.

The Bill also targets drip pricing by requiring clearer display of transaction-based charges. In practical terms, businesses will need to make sure additional mandatory charges are displayed clearly, prominently and close to the base price, so customers can understand the real cost before progressing through the purchase journey.

For retailers and wholesalers selling direct to consumers, this means reviewing checkout flows, payment surcharges, booking or service fees, handling charges and other transaction-based costs that may currently appear late in the purchase process. The risk is not limited to whether the fee is disclosed somewhere. The issue will be whether the charge is displayed early enough, clearly enough and prominently enough to avoid customers being drawn into a transaction on an incomplete price impression.

The proposed reforms also introduce specific protections for subscription arrangements. Businesses offering subscriptions will need to provide clear information about the nature of the subscription, pricing, renewal or continuation terms, cancellation requirements and how the customer can end the arrangement. Cancellation processes will also need to be straightforward and require only reasonably necessary steps.

This is particularly relevant for businesses using free trials, introductory discounts, automatic renewals, memberships, loyalty programs, replenishment models or ongoing service packages. Businesses should review whether customers can easily understand when they will be charged, how long they are committing for, when the arrangement renews, and how to cancel without unnecessary friction.

These reforms will directly affect businesses selling to consumers, including retailers, eCommerce brands, marketplaces, subscription providers and wholesalers with consumer-facing sales channels. The highest-risk areas are likely to be pricing and checkout processes, subscription renewals, free trial conversions, website and app design, add-on sales, bundled offers, cancellation pathways and the way key product or pricing information is presented.

The key legal shift is that conduct may be caught even if it is not technically misleading. A business could still face risk if the overall sales process unfairly influences, pressures or disadvantages consumers. That means compliance reviews will need to go beyond checking marketing claims and terms and conditions. Businesses will need to review the full customer journey, including design, sequencing, defaults, prompts, disclosures and cancellation steps.

Retail and wholesale businesses should start preparing now by reviewing customer journeys, pricing displays, checkout processes, subscription terms, renewal notices, cancellation pathways and website or app design. Internal compliance frameworks, staff training and approval processes should also be updated before the proposed 1 July 2027 commencement date.