ACCC boss wants new powers to crack down on online businesses that make it hard to cancel subscriptions

If you want to unsubscribe from Amazon Prime in Europe, there is a simple two-step process. But customers in Australia must navigate four convoluted steps, with the wording and location of the cancellation button changing between each screen.

Now Australian online businesses that put up hurdles to make it harder for customers to unsubscribe from their services may face a crackdown from the federal government, with plans to be unveiled later this year.

The Amazon discrepancy was uncovered last year by the Consumer Policy Research Centre (CPRC), which said Amazon agreed to shorten the cancellation process for European customers following a 2022 finding by the European Commission that Amazon had breached the unfair commercial practices directive.

Subscription traps are more difficult to prevent in Australia due to an absence of the kind of unfair trading practices laws that exist in Europe and elsewhere, but that could soon change.

Such practices are not covered by current law because they are not considered misleading or deceptive conduct, false or misleading representations, unfair contract terms, or unconscionable conduct, according to the regulator.

The call for new powers is supported by consumer groups and legal experts. Erin Turner, the CEO of the CPRC, said too many companies were engaging in the practice.

Rob Nicholls, an associate professor of regulation and governance at the University of New South Wales, said it would be a big change for Australia.

The assistant treasurer, Stephen Jones, met with state and territory consumer affairs ministers in September last year, when it was agreed the federal government would progress consultation on proposed reforms to unfair trading practices.

The consultation is likely to be released in the coming months.

The US Federal Trade Commission introduced a proposal last month that would require companies with customers on recurring payment programs to offer easy online cancellation.