August 20, 2024

Let Me Out – Subscription trap practices in Australia

While subscribing to services is often quick and easy, cancelling these subscriptions can be a frustrating and time-consuming process. This report explores:

  • the impact of subscription traps on Australian consumers
  • harmful subscription tactics
  • commendable subscription tactics
  • solutions to address this growing issue.
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Key findings

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%

Australians have spent more time than they intended in trying to cancel a subscription

1 in 3

Close to 1 in 3 Australians (32%)  have felt pressured into keep a subscription

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Three quarters of Australians (75%) with subscriptions have had some form of negative experience when trying to cancel a subscription

%

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%

90% of Australians would likely purchase from the same organisation if cancelling a subscription process was quick and simple

Recommendations

The research continues to show the need for a shift in business practices and law reform to genuinely protect consumers from harm.

For Australian Government:

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Introduce an unfair trading prohibition into Australian law and require businesses to make opting-out of a service as easy as opting-in
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Take inspiration from other jurisdictions to introduce measures that mitigate harm caused by subscription traps

For Businesses:

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Revise current cancellation processes to make changes that support consumers, instead of deceiving them
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Avoid practices that rely on tricking customers or make money because of customer inertia or forgetfulness
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Use data for good to help non-active subscribers to unsubscribe
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Respect customers, even at the point of cancellation

In the long-term, there is an opportunity for businesses and banks to work together to enable consumers to cancel subscriptions through their bank transactions.

Where to from here?

CPRC welcomes the opportunity to work further on this issue with government, regulators, policy makers, academia and the community sector. 

If you are in one the above groups and would like a one-on-one briefing for your organisation, contact our team today. 

Links

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