After months of consultation and debate, the Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (Bill) has now passed both Houses of Parliament. From 1 July 2027, businesses will be subject to a new Unfair Trading Practices (UTP) regime that significantly expands Australia’s consumer protection framework and places greater scrutiny on how businesses design and deliver the consumer experience.

As foreshadowed in our previous article, the UTP regime will amend the Australian Consumer Law (ACL) by introducing:

1. a broad prohibition on unfair trading practices (new section 28B);
2. a targeted provision addressing drip pricing (new section 48A); and
3. a new regulatory framework governing subscription contracts (new sections 48B – 48H).

These provisions are aimed at targeting conduct which may not neatly breach existing ACL prohibitions (such as misleading and deceptive conduct, unconscionable conduct and unfair contract terms) but nonetheless manipulates consumers or distorts the conditions under which transactional decisions are made.

Who are consumers and which contracts are impacted?

The scope of the reforms differs depending on which part of the regime is being considered.

The new general UTP prohibition is directed at consumer transactions involving natural persons acting in their personal capacity. Importantly, the prohibition does not apply where the consumer is a body corporate or where the goods or services are acquired in the course of carrying on a business.

The subscription contract reforms are broader in scope. In addition to contracts under which an individual acquires goods or services predominantly for personal, domestic or household use, the subscription reforms also extend to small business subscribers who enter into standard form subscription contracts, where that small business employs fewer than 100 employees or has an annual turnover below $10 million. Unlike the consumer limb of the regime, there is no requirement that the goods or services acquired by the small business be of a kind ordinarily acquired for personal, domestic or household use.

Although the reforms commence on 1 July 2027, it is important to note that the general UTP prohibition applies to conduct occurring after that date, regardless of when the relevant contract was entered into.

The position is different for the specific subscription contract obligations. Those obligations apply to subscription contracts entered into after 1 July 2027, as well as subscription contracts entered into before that date that are subsequently renewed, extended, continued or varied after 1 July 2027.

What does this mean for businesses?

Practices which have historically been viewed as effective sales or marketing techniques have the potential to fall foul of the UTP regime.

Historically, many businesses have focused on ensuring their representations are not misleading or deceptive. Under the new UTP regime, the scrutiny extends beyond what is said, to how the consumer experience is designed. The question is no longer simply whether a representation is misleading. It is also whether the overall design of the customer experience manipulates consumers or distorts the conditions under which they make decisions.

Ultimately, the focus of consumer regulation is shifting from what businesses represent and contract for, to how they influence consumer behaviour.

The steep price of getting it wrong

The new UTP regime will be enforced by the ACCC and carry significant penalties in line with similar ACL breaches (up to $100 million, or higher turnover based alternatives, as well as infringement notices). Notably, these maximum penalties increased from $50 million in late March 2026 (see our previous article here).

Given the ACCC’s recent focus on impacts to customer decision making, businesses can expect that these reforms will be a key enforcement area moving forward.

What steps should businesses take now?

With commencement scheduled for 1 July 2027, businesses should begin preparing now. As a starting point, businesses should review their pricing practices, subscription models, sales processes, customer-facing interactions and marketing strategies to assess whether any current practices could manipulate consumers or distort consumer choice. Businesses should also review the way fees and charges are disclosed to customers and, where they offer subscription products or services, ensure they can comply with the new requirements relating to disclosures, notifications, renewals and cancellations.

What’s next?

In our next article, we will deep-dive into the new provisions and explore how the general UTP, subscription and drip-pricing obligations work, and the practical measures businesses can take in preparation for 1 July 2027.

How can we help you?

We regularly advise clients on consumer law risks, assess subscription models, customer journeys and marketing materials, and help businesses implement practical compliance measures that align with their commercial objectives.

If you would like tailored advice about the upcoming UTP regime or support to review current practices, please get in touch.

This article was written by Teresa Torcasio, Partner, Alysha Schutz, Special Counsel, and Kaitlyn Firnigl, Solicitor.