6 ‘Dodgy’ Pricing Tactics Targeted In Australia’s Crack Down

The Albanese government announced plans to crack down on unfair and “dodgy” trading practices – with “subscription traps”, “drip pricing” and “dynamic pricing” at the top of the list. 
 
“Subscription traps” is when it is made difficult to cancel a subscription online. While “drip pricing” is when extra fees are slowly added at each step of a purchase.

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“Dynamic pricing”, is a demand-based pricing strategy in which businesses set flexible prices for products or services based on current market demands.

The Government’s crackdown on dodgy pricing and trading tactics is also targeting:

• Sites requiring customers to set up accounts for purchases not requiring one
• Online marketing ploys aimed to confuse or overwhelm
• Tactics that create a false sense of urgency, like warnings and time limits on a purchase.

Online prices that surge at times of peak demand are becoming more common, from gigs and sporting events to booking a flight or an Uber. 

The Federal Government says dynamic ticket pricing is to be banned completely. This follows criticism around recent ticket sales for Green Day and the Australian Open. 

Hear more about dynamic ticket pricing in The Briefing podcast’s deepdive:

Anthony Albanese and Treasurer Jim Chalmers will reveal the specifics today, saying it still requires consultation – but have dubbed it a cost-of-living relief measure. 

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