Subscription ‘traps’ making it unnecessarily difficult to cancel a contract will become unlawful, thanks to a new crackdown on unfair trading practices that passed through Parliament this week.
From July 1, 2027, gyms, tech startups, and other businesses with ongoing memberships will need to give users an easy and straightforward means to cancel their subscription contract.
The Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026, which finally passed both Houses of Parliament on Thursday, states businesses that bend those rules could face hefty financial penalties.
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Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
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