AUSactive has acknowledged the passage of new Australian Consumer Law reforms addressing ‘subscription traps’, saying the changes will strengthen consumer confidence while giving responsible businesses a clear and consistent framework for subscriptions and memberships. It does not expect a significant impact on the sector due to the new laws.
The Competition and Consumer Amendment (Unfair Trading Practices) Act 2026 will take effect on 1 July 2027.
The reforms require businesses offering subscription contracts to provide clearer information before sign-up, notify customers at key points during a subscription and offer an easy and straightforward way to cancel, including an online cancellation option in certain circumstances.
AUSactive Survey
An AUSactive survey suggests many businesses already operate broadly in line with the intent of the reforms, particularly around transparency, fair practices, and communication with customers.
It is clear that while there is a desire to be compliant with the new legislation support will be needed to help ensure compliance (e.g. education, clarity on terminology) and that there is uncertainty about the cost of updating materials, websites and the cost of aligning CRMs and third party- providers (for example, payment systems).
AUSactive Supports the Intent of the Legislation
AUSactive supports the intent of the legislation: to ensure consumers can make informed choices and manage ongoing memberships with confidence and does not see a material difference to consumer engagement in the sector.
“A strong active health sector depends on trust. These reforms are an opportunity to reinforce good practice, give consumers greater confidence and support sustainable, long-term participation in physical activity,” AUSactive CEO Ken Griffin said.
“AUSactive acknowledges that implementation will require work across membership agreements, notices, payment systems, digital platforms and cancellation processes. We will support our members throughout the transition so they can understand the new requirements and prepare with confidence.”
Practical Member Guidance
AUSactive will develop practical member guidance in November this year ahead of commencement on 1 July 2027, including:
- Plain-English information, implementation resources, education opportunities and updates as regulatory guidance becomes available.
- A helpline to provide advice to members.
- Education through webinars.
- A new National Code of Practice.
- A line of communication with the relevant Minister as well as the Australian Competition and Consumer Commission (ACCC) so that any unintended consequences from the legislation can be communicated.
“This is a positive step for consumers and for reputable operators. Clear expectations create a level playing field and allow businesses that put their members first to stand out,” Mr Griffin said.
Member Survey Results
During a member survey, AUSactive saw that there is strong support for the intent of the reforms.
At the same time, businesses recognise:
- there will be practical impacts from implementation, particularly where reforms require changes to systems and processes, including the set-up of automated notices; and
- successful implementation will depend on clear guidance, reasonable transition timeframes, and practical support, especially for small businesses and franchise networks.
Expected Changes to Current Practices
Overall, gym owners reported that the proposed reforms will require the following changes to their current practices:
- No change (16%)
- Minor changes (52%)
- Moderate change (27%)
- Significant change/Unsure (5%)
