Subscription traps that make it difficult and confusing to cancel ongoing contracts could soon be banned.
Online retailers who force customers to set up accounts and provide unnecessary information during transactions will also be targeted.
The Albanese government has outlined a range of legislative measures to try and stop businesses ripping people off.
These include ‘drip pricing’ tactics that add hidden fees as well as ‘dynamic pricing’, which impacts a product’s cost during a transaction.
Deceptive and manipulative practices – such as claiming customers had limited time to buy a product – would also be outlawed.
Businesses who made it difficult for customers to contact them about problems with products and services would also be scrutinised.
Prime Minister Anthony Albanese said it was time to end “dodgy” business practices.
“Hidden fees and traps are putting even more pressure on the cost of living and it needs to stop,” he said on Wednesday.
Treasurer Jim Chalmers said it was time to change the rules.
“Most businesses do the right thing by Australians and they’ve got nothing to worry about,” he said.
“This is all about cracking down on dodgy deals to save Australians money if we can, and where we can.”
Treasury will consult on the prohibitions before the government moves to legislate.
The proposed changes follow announcements on supermarket prices and credit card transaction fees, as the government builds an argument around cost-of-living relief ahead of next year’s federal election.
The government has released a consultation paper on better protections for customers and small business owners under consumer laws.
It wants feedback on introducing penalties for suppliers who refuse to provide repairs, replacements or refunds.
It can hard to secure a solution under existing rules, particularly when engaging in the digital economy.
The changes would empower the consumer watchdog and state and territory agencies to issue fines and penalties.
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