New laws to crack down on subscription traps and unfair trading practices

Scheduled to commence from 1 July 2027, small businesses will soon benefit from stronger protections against subscription traps and other unfair trading practices following the passing of the Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026. 

The reforms introduce a broad prohibition on unfair trading practices and target subscription arrangements that make it easy to sign up but difficult to cancel. The changes are designed to create a fairer marketplace for businesses and consumers by improving transparency and reducing harmful business practices. 

For small business owners, the new laws will help address common issues such as unexpected subscription renewals, hidden cancellation processes and misleading sales tactics that can lead to unnecessary costs. 

The reforms form part of the Australian Government's broader consumer protection agenda and are expected to encourage fairer competition and greater confidence when businesses purchase products and services. 

Small businesses should familiarise themselves with the new requirements and review any subscription-based services they use or provide to ensure they understand how the changes may apply once they come into effect. 

The NSW Small Business Commission encourages business owners to stay informed about the new laws and seek advice if they have concerns about unfair business practices or their rights when entering into commercial agreements.