Unfair trade practices have long been a thorn in the side of Australian consumers and honest businesses alike. With the digital economy evolving and regulatory frameworks tightening in 2025, understanding what constitutes unfair conduct—and how to spot it—has never been more important. Whether you’re shopping online, signing a contract, or running a small business, knowing your rights and responsibilities can save you from costly pitfalls.
What is an Unfair Trade Practice?
In Australia, unfair trade practices are defined as business behaviours that mislead, deceive, or otherwise take advantage of consumers or competitors. The Australian Consumer Law (ACL), under the Competition and Consumer Act 2010, lays out clear rules prohibiting these practices. In 2025, the Australian Competition and Consumer Commission (ACCC) has further refined these definitions to address emerging digital risks and strengthen consumer protections.
- Misleading or deceptive conduct: Any statement or action that creates a false impression about a product or service.
- False representations: Claiming a product has benefits, characteristics, or endorsements it doesn’t possess.
- Bait advertising: Advertising products at a low price when there’s insufficient stock to meet demand.
- Unconscionable conduct: Taking advantage of a consumer’s vulnerability, such as through aggressive sales tactics or unfair contract terms.
The ACL applies to all businesses operating in Australia, regardless of size or industry, and covers transactions both online and offline.
Deceptive Methods: How Unfair Practices Show Up in 2025
With the rise of e-commerce and fintech, deceptive trade practices have become more sophisticated. The ACCC’s 2025 crackdown targets several key areas:
- Drip pricing: Businesses advertising a low upfront price, only to add hidden fees at the checkout. This practice is now subject to stricter enforcement, with several travel and event ticketing websites fined in early 2025.
- Greenwashing: Making unsubstantiated environmental claims. The ACCC’s new Green Claims Code, effective March 2025, requires businesses to provide robust evidence for sustainability statements. For example, a cosmetics company was fined for labelling products as “100% biodegradable” without scientific backing.
- Fake online reviews: Paying for positive reviews or suppressing negative feedback. In 2025, digital platforms must implement stronger verification processes to detect and remove deceptive content.
- Dark patterns: Designing websites or apps to trick users into making purchases or sharing data, such as confusing unsubscribe processes or pre-ticked opt-in boxes. The ACCC now treats certain dark patterns as deceptive conduct under the ACL.
Real-World Examples: Spotting Unfair Trade Practices
Recent cases highlight the breadth of unfair trade practices and the consequences for offenders:
- BigBox Electronics (2025): The retailer was fined $2.1 million for advertising “sale” prices that were identical to regular prices, misleading consumers into believing they were getting a discount.
- CleanEarth Energy (2025): Fined for making unsubstantiated claims about the carbon neutrality of its products, following the ACCC’s new Green Claims Code requirements.
- QuickLoan App (2025): Penalised for presenting loan offers without disclosing high establishment fees until the final approval stage, a classic case of drip pricing.
- HomeFit Real Estate (2024–2025): Ordered to refund customers after using high-pressure sales tactics and failing to disclose key contract terms, deemed unconscionable conduct under the ACL.
Consumers can also fall victim to unfair practices in everyday situations: a gym contract with hidden cancellation fees, a phone plan advertised as “unlimited” with undisclosed restrictions, or a website that makes it nearly impossible to opt out of marketing emails.
2025 Policy Updates: What’s Changed?
This year, several policy updates are reshaping the landscape:
- Mandatory reporting: Businesses must now report breaches of the ACL within 30 days, or face higher penalties.
- Expanded definition of unconscionable conduct: The ACCC can now take action against businesses exploiting digital vulnerabilities (e.g., algorithmic bias or exploitative user interfaces).
- Increased penalties: Maximum fines for corporations have risen to $50 million or more, reflecting the seriousness of breaches in the digital era.
- Stronger whistleblower protections: Employees who report unfair trade practices are now shielded by new workplace laws.
These changes signal the government’s commitment to keeping pace with new business models and protecting both consumers and ethical businesses.
Conclusion: Protect Yourself and Your Business
Understanding unfair trade practices isn’t just about compliance—it’s about building trust, protecting your finances, and making informed decisions. As regulations evolve in 2025, staying alert to deceptive methods and knowing your rights under the Australian Consumer Law is more important than ever. If you suspect you’ve encountered an unfair practice, document the details and contact the ACCC for guidance.
