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Title page 1

Contents 4

Members 3

Abbreviations and Acronyms 6

Chapter 1. Introduction 7

Purpose of the bill 7

General prohibition on unfair trading practices 8

Strengthening protections against drip pricing 8

Protections against detrimental subscription practices 9

Context 10

Consultation on the bill 11

Key provisions 11

Part 1-Unfair trading practices 11

Consumer manipulation or unreasonable distortion of environment (limb 1) 12

Detriment to the consumer (limb 2) 14

Exceptions to the general prohibition 14

Enforcement of the general prohibition 14

Part 2-Drip pricing 15

Applicable goods or services 15

Base price 15

Transaction based charge 15

Information that must be displayed 16

Part 3-Subscription contracts 17

Financial impact 18

Compliance cost impact 18

Commencement 18

Human rights implications 18

Right to a fair trial and the presumption of innocence 18

Civil penalty provisions 18

Reversal of evidential burden 19

Right to privacy 19

Freedom of expression 19

Legislative Scrutiny 20

Senate Standing Committee on the Scrutiny of Bills 20

Parliamentary Joint Committee on Human Rights 21

Conduct of the inquiry 21

Acknowledgments 21

Chapter 2. Views on the bill 22

General prohibition on unfair trading practices 22

Support for the general prohibition on unfair trading practices 22

Clarity, breadth and legal certainty of the general prohibition 26

Clarity and operation of the manipulation limb 26

Other areas of clarification related to the manipulation limb 31

Threshold for consumer detriment 32

Examples of unfair trading practices in proposed subsection 28B(6) 34

Other matters 38

Need to extend unfair trading prohibition to financial products and services 38

Exceptions to the general prohibition-Proposed subsections 28B(3) and (4) 39

Support for excepting business-to-business conduct 41

Drip pricing 42

Application of proposed section 48A to delivery charges 43

Other issues raised in relation to drip pricing 45

Guidance on disclosure requirements 45

Application to add-on products 45

Application to virtual currency 45

Impacts on the franchising sector 46

Subscription contracts 46

Information which must be disclosed when offering a subscription contract 47

Information which must be disclosed when a subscription contract is in effect 48

Application to small business contracts 48

Notification at the end of a free trial period 49

Exit method 49

Other matters related to the bill subscription contract provisions 51

Implementation provisions 52

Committee view 54

Appendix 1. Submissions and Additional Information 58

Appendix 2. Public Hearing and Witnesses 60