Australia to ban dynamic pricing as Government takes aim at “dodgy practices”

Australia’s Federal Government has announced plans to ban dynamic pricing as part of a clampdown on what it deems to be unfair trading practices.

Prime Minister Anthony Albanese has vowed to outlaw dynamic pricing, where a product’s price changes during the transaction process. Drip pricing practices, where fees are hidden or added throughout the stages of a purchase, will also be prohibited. Concerns over concert and airline tickets were namechecked as the Albanese Government announced its plan.

The Government said it will amend Australian Consumer Law by banning practices that can distort purchasing decisions, or result in additional costs, putting more pressure on the cost of living. It will also target ‘subscription traps’ and actions that aim to confuse or overwhelm consumers.

Australia’s Treasury will consult on the design before the Government legislates a general prohibition on unfair trading practices. This will include specific prohibitions of a range of what it calls “dodgy practices”.

Albanese said: “We’re taking strong action to stop businesses from engaging in dodgy practices that rip consumers off.

“Today’s announcement puts businesses engaging in unfair trading practices on notice.

“Hidden fees and traps are putting even more pressure on the cost of living and it needs to stop.”

Dynamic pricing ban comes after Green Day backlash

There was an outcry in the UK over the use of dynamic pricing for the Oasis on-sale earlier this year. While the practice was not utilised for the band’s Australian concerts, there was a backlash when dynamic pricing was used for upcoming Green Day gigs. Ticketmaster listed tickets for the American punk band’s tour for as much as A$500.

The Albanese Government said its reforms are designed to empower the Australian Competition and Consumer Commission (ACCC) and state and territory consumer protection agencies to issue infringement notices or pursue penalties for breaches of the Consumer Guarantee and Supplier Indemnification provisions of the Australian Consumer Law.

Following consultation, the Government will work with states and territories to settle a final reform proposal in the first half of 2025.

Assistant Treasurer and Minister for Financial Services Stephen Jones said: “Consumer protections shouldn’t stop at the internet. Whether you are shopping online or at a brick-and-mortar store, the Albanese Government is protecting Australian consumers.

“This is all about ending the rip offs so people don’t fall into subscription traps or added fees when they purchase things like airline or concert tickets.”