Hidden fees on concert tickets will soon be a thing of the past, as the federal government cracks down on deceptive practices in the consumer market. Gym memberships and streaming services will also be required to make canceling subscriptions easier for customers, addressing the growing issue of subscription traps.
Amidst a cost-of-living crisis, the government is responding to widespread customer frustration and anger over hidden fees and difficult cancellation processes. As people embark on their New Year’s resolutions, signing up for subscriptions to improve their lives, experts warn of the dangers lurking in the fine print.
### Subscription Traps: A Growing Concern
Increasingly, customers are finding themselves locked into gym memberships, food delivery services, and streaming subscriptions, only to be automatically charged after a free trial period. According to Angus Kidman, editor at large of Finder, three quarters of Australians have faced challenges canceling a subscription, with nearly a third feeling pressured to continue a service they wanted to leave.
“It should be easy to cancel,” Kidman emphasizes. “You shouldn’t have to jump through hoops or search for hidden links buried in emails.”
### Drip Pricing and Deceptive Practices
One common deceptive practice, known as “drip pricing,” involves adding extra fees and charges at the checkout when purchasing concert tickets or airfare online. This misleading tactic will soon be outlawed under the new legislation being drafted by the federal government.
Gina Cass-Gottlieb, chairperson of the Australian Competition and Consumer Commission (ACCC), applauds the impending changes, noting that the prohibition of unfair trading practices is long overdue. The new laws will hold companies accountable for clearly disclosing lock-in contracts upfront, ensuring transparency for consumers.
### Government Action and Opposition Response
Assistant Treasurer Stephen Jones affirms that the crackdown on deceptive practices is necessary to protect consumers from being misled and overcharged. However, the opposition, led by shadow treasurer Angus Taylor, criticizes the government for delays in introducing the legislation before the upcoming election.
As the debate continues, customers are advised to stay vigilant and informed about their subscriptions to avoid falling into costly traps. The push for greater transparency and fairness in the consumer market reflects a broader effort to empower individuals and safeguard their rights.
Remember, knowledge is power when it comes to your finances and subscriptions. Stay informed, read the fine print, and be proactive in managing your consumer rights.