Unfair Trading Practices Act 2026 and $100 million ACL penalties

New bans on unfair trading practices, drip pricing and subscription traps start 1 July 2027. ACL penalties of up to $100 million already apply.

6 July 202612 min read

On 6 July 2026 the Competition and Consumer Amendment (Unfair Trading Practices) Act 2026 received Royal Assent. It adds three new sets of rules to the Australian Consumer Law (ACL): a general ban on unfair trading practices, a rule against drip pricing, and new requirements for subscription contracts. None of these rules are in force yet. The whole Act commences on 1 July 2027.

Separately, and already in force, maximum ACL penalties for companies were doubled earlier in 2026. For conduct on or after 28 March 2026, the fixed maximum per contravention is $100 million. For practices that display prices online, sell treatment packages or run membership plans, these two changes together set the direction for the next year of marketing work.

What changed

It helps to separate what is in force now from what is coming.

In force now: $100 million maximum penalties (from 28 March 2026)

The Treasury Laws Amendment (Doubling Penalties for ACCC Enforcement) Act 2026 (Act No. 19 of 2026) received Royal Assent on 27 March 2026 and commenced the next day, 28 March 2026. It replaced references to $50,000,000 with $100,000,000 across a list of penalty provisions in the Competition and Consumer Act 2010, including the ACL’s pecuniary penalty provisions. The amendments apply to conduct on or after commencement.

For a company, the ACL maximum per contravention is therefore now the greater of $100 million, three times the benefit obtained, or (if the benefit cannot be determined) 30% of adjusted turnover during the breach turnover period. The benefit and turnover limbs (the turnover limb was revised in 2022) were not changed by the 2026 Act. The Treasurer’s release described the change as doubling penalties for false or misleading conduct and cartel behaviour “across the economy“. Although the announcement focused on petrol prices, the Act is not limited to fuel.

Coming on 1 July 2027: the Unfair Trading Practices Act

The Competition and Consumer Amendment (Unfair Trading Practices) Act 2026 (Act No. 64 of 2026) was introduced on 1 April 2026, passed Parliament on 2 July 2026 and received assent on 6 July 2026. Its commencement table is simple: the whole of the Act commences on 1 July 2027. The Government said the 12-month gap is to give businesses time to prepare, and that it has funded the ACCC to deliver guidance and education. We could not find published ACCC guidance on the new rules at the time of writing.

The Act makes three main changes, described below.

Who it applies to

The new rules are aimed at dealings with consumers. For health practices, that generally means your dealings with patients.

Unfair trading practices apply to conduct in connection with supplying, or offering to supply, goods or services to a consumer. They do not apply where the consumer is a body corporate, or where the supply is in the course of the consumer carrying on a business.
Drip pricing applies to goods or services of a kind ordinarily acquired for personal, domestic or household use or consumption. It does not apply where an offer is made exclusively to a body corporate.
Subscription contract rules on ongoing information and exit apply where the contract meets a “consumer requirement” (an individual acquiring wholly or predominantly for personal, domestic or household use) or a “small business requirement” (a standard form contract where the subscriber employs fewer than 100 people or has turnover under $10 million).

Many patient-facing services are likely to fall within these descriptions, but whether a particular service or charge is covered will depend on the facts. Watch for ACCC guidance before 1 July 2027.

What the rules require

1. A general ban on unfair trading practices (new section 28B)

A person must not, in trade or commerce, engage in unfair trading practices. Under the Act, a person engages in an unfair trading practice if, in connection with supplying or offering goods or services to a consumer, the conduct does or is likely to manipulate the consumer, or unreasonably distort the environment in which the consumer makes a decision, and causes or is likely to cause detriment (financial or otherwise).

The Act gives examples of conduct that may be an unfair trading practice:

impeding the consumer’s ability to exercise legal rights or seek legal remedies;
failing to disclose material information;
disclosing material information in a complex, ineffective, unclear, unintelligible, ambiguous, untimely or overwhelming way; and
creating an environment, including through design elements in digital interfaces, that puts the consumer under unreasonable pressure, or obstructs them from making or fulfilling their decision.

The ACL penalty table is amended so that this new ban carries the same corporate maximum as other ACL penalty provisions (the greater of the amounts in the turnover-based formula, now with a $100 million fixed amount), and up to $2,500,000 for individuals. The ban applies to conduct on or after 1 July 2027.

2. Drip pricing (new section 48A)

If you display a base price when offering goods or services, you must also display information about any “transaction based charge” for the supply. That means:

the amount of the charge, or if it cannot be calculated, the method for calculating it;
that it is a per transaction charge;
whether it is or may be payable; and
whether or not the displayed base price includes it.

This information must be displayed while the base price is displayed, in a legible, prominent and unambiguous way, and in close proximity to the base price. The Act notes the rule applies each time a base price is displayed, which may be at different stages of the purchase process.

A transaction based charge is a charge that is or may be payable for the supply, is not for the goods or services themselves, and is payable at the same time as the amount for the goods or services. Some charges are excluded, including:

charges payable at the purchaser’s option;
payment surcharges (as defined in the Competition and Consumer Act);
taxes, duties, fees, levies or charges imposed on the supplier, and certain amounts paid under government arrangements; and
charges prescribed by regulations.

The Government’s release gave the example of last-minute service and handling fees added at checkout that were not disclosed earlier. For a practice, the obvious candidates to check are booking fees, admin or service fees, or platform fees charged at the same time as the consultation or treatment price. Whether a given fee is a transaction based charge depends on how it works, so do not assume either way.

3. Subscription contracts (new Division 4A)

What counts. A subscription contract includes contracts that provide for recurring or continuing supply for an indefinite period with automatic payment and a right to end; fixed-period contracts that continue automatically after the period ends; contracts with a free initial period followed by automatic payment; and contracts with a discounted initial period followed by a higher automatic rate.

What does not count. Excluded contracts include leases, licences of real property, hire-purchase, contracts for payment in instalments, childcare, school and pre-school tuition, and any kinds prescribed by regulation. A payment plan for a single course of treatment may be a contract for payment in instalments, but check how your arrangement is structured.

Disclosure when offering (s 48D). When offering a subscription, you must disclose a statement that the contract would be a subscription contract, and information about:

the liabilities to pay the subscriber would or may incur;
the period of the contract;
renewal, extension or continuation;
any notice required to end it; and
how to end it.

Unless regulations prescribe otherwise, this must be disclosed either in a comprehensible, audible and unambiguous way within a reasonable time before the person can agree, or in a legible, prominent and unambiguous way in close proximity to where they agree.

Information during the contract (s 48E). For subscription contracts prescribed by regulation, suppliers must give prescribed information at prescribed times. The details will depend on regulations.

Exit method (s 48F). You must provide a way to end the contract, and each way must be easy to find, straightforward, and require only steps reasonably necessary to end the contract and protect the subscriber’s interests. If the subscriber signed up online, or you offer online sign-up for the same kind of subscription, one of the ways to end it must be online.

Existing contracts. The subscription definitions, ongoing information and exit rules apply to contracts entered on or after 1 July 2027. Contracts entered before then are caught if they are renewed, extended, otherwise continued or varied on or after that date.

What it means for your marketing

Website and online booking

Map every place a price appears: service pages, price lists, booking engine, checkout. For each, note any fee charged at the same time as the service.
Plan to show any transaction based charge right next to every displayed base price, not only at the final step.
Review booking flows for pressure design: countdown timers, “only one spot left” claims that are not accurate, pre-selected add-ons, or confusing cancellation paths. These are the kinds of features the unfair trading practices examples describe.
Make sure material information, such as total likely cost, deposits and cancellation terms, is clear and timely, not buried or overwhelming.

Memberships, plans and packages

Skin, wellness, dental and allied health memberships that renew automatically are likely to be subscription contracts. Before 1 July 2027:

add a clear statement at sign-up that the plan is a subscription, with payment amounts, period, renewal, notice and how to cancel;
build an easy online cancellation path if members can join online; and
remember that renewing or varying an existing membership after 1 July 2027 brings it under the new rules.

Introductory offers (a free first month or a discounted first period that rolls into a higher rate) are specifically covered.

Paid ads

If an ad shows a price, check whether a per transaction fee is charged on top. The drip pricing rule applies “each time a base price is displayed“, which may include ads, depending on how the offer is presented. Keep prices in ads consistent with the landing page.

Email and SMS

Renewal reminders and membership emails are a natural place to restate how to cancel. Avoid wording that discourages or obstructs cancellation.

In-clinic

Reception scripts and printed price lists should match the website. If a member asks to cancel in person, there should be a clear, simple process.

Common mistakes we see

Booking fees revealed at the last step. A price shown on the service page with a fee added only at checkout.
“Call us to cancel” for online memberships. From 1 July 2027, online sign-up generally means an online exit must be available.
Auto-renewal buried in terms. The subscription nature of the plan not stated near the sign-up button.
Retention friction. Multiple screens, mandatory calls or repeated offers before a member can leave.
Assuming it does not apply to health. The new rules are not limited to retail; they apply to goods and services ordinarily acquired for personal use.
Waiting for 2027. Rebuilding booking and membership flows takes time, and renewals after 1 July 2027 will be caught.

A practical checklist

Confirm your current advertising is accurate now: the $100 million maximum already applies to conduct from 28 March 2026.
List every fee charged alongside a consultation or treatment, and decide with your adviser which may be transaction based charges.
Plan to display those charges next to every base price, legibly and prominently.
Identify any membership, plan or package that renews or continues automatically.
Draft the subscription statement and key information for each, placed close to where patients agree.
Build an easy-to-find, straightforward cancellation method, online where sign-up is online.
Audit booking and sign-up flows for pressure tactics or confusing design.
Check that material information is shown clearly and in time, not in fine print.
Note renewal and variation dates for existing memberships after 1 July 2027.
Watch for ACCC guidance and any regulations prescribing exclusions or extra information.

How this fits with other rules

Existing ACL rules. The Act says the new unfair trading practices ban is not limited by the existing unfair practices provisions in Part 3-1, and the drip pricing rule does not limit the existing section 48 on component pricing. Misleading conduct rules continue to apply alongside both.

Unfair contract terms. Since 9 November 2023, unfair terms in standard form consumer and small business contracts can attract penalties. Subscription terms, such as one-sided variation rights or exit fees, remain subject to those rules as well as the new disclosure and exit requirements.

National Law and Ahpra. For registered practitioners, Ahpra’s advertising rules continue to apply to how services are advertised, including the ban on testimonials. The new ACL rules are about pricing, subscriptions and manipulative design, and sit alongside your professional obligations.

More to come. The Government said consultation was underway on extending unfair trading practice protections to small businesses and franchisees, with submissions open until 10 July 2026. A review of the subscription provisions is required after their first two years.

Frequently asked questions

Are the drip pricing and subscription rules in force now?

No. The Act received assent on 6 July 2026 but all of it commences on 1 July 2027. What is in force now is the higher $100 million maximum penalty, for conduct from 28 March 2026, and the existing ACL rules on misleading conduct and pricing.

Is a booking fee or service fee a “transaction based charge“?

It depends on the facts. The Act defines a transaction based charge as one that is not for the goods or services themselves and is payable at the same time, and excludes optional charges, payment surcharges and certain taxes and government amounts. Get advice on your specific fees and watch for ACCC guidance.

Do the subscription rules cover our existing members?

Not automatically. They apply to contracts entered on or after 1 July 2027, and to existing contracts that are renewed, extended, continued or varied on or after that date. Many memberships renew regularly, so most will be caught over time.

Is a payment plan a subscription?

Contracts for payment in instalments are listed as excluded subscription contracts. A plan to pay off a single treatment may fall into that category, but an ongoing membership with automatic payments is likely to be treated differently.

What are the penalties under the new rules?

The Act notes that pecuniary penalties may be imposed for contraventions. For the unfair trading practices ban, it adds a row to the ACL penalty table using the same corporate formula as other ACL provisions, and $2,500,000 for individuals.

Need a hand?

If you sell memberships or display prices online, now is a sensible time to plan changes rather than rushing them in mid-2027. Our clinic websites team can rebuild price displays, booking flows and membership sign-ups, and our compliance audit can review pricing and offers against both consumer law and Ahpra requirements. If membership emails are part of your model, our patient email marketing service can set up clear renewal and cancellation messaging.

This article is general guidance based on the published rules, not legal advice. Final responsibility for your pricing, contracts and advertising sits with your practice and, for health advertising, the registered practitioner, and complex situations may need independent legal advice.