With world class instruction and over 3,000 workouts to choose from, Hydrow becomes an at-home gym option that is difficult to refuse.
With world class instruction and over 3,000 workouts to choose from, Hydrow becomes an at-home gym option that is difficult to refuse.

The Albanese government is cracking down on unscrupulous companies that use unfair trade strategies, such as subscription services, to target Australians, who want to improve themselves as part of their new year resolutions.

These "subscription traps" are seen in gym services, meal-kit providers, and health applications, and it is often difficult for users to stop automatic renewals after free trials.

The crackdown comes as the federal government plans to impose fines of up to AU$50 million on businesses that continue to defraud Australians, News.com.au reported.

Financial Services Minister Stephen Jones blasted companies for making it too difficult for customers to terminate subscriptions and memberships, pointing to complicated procedures, ambiguous cancellation clauses, and automatic renewals that entice customers to make recurring payments, per Sky News.

"It is frankly un-Australian for businesses to engage in this kind of tricky behaviour and our government says enough is enough," Jones said in a statement on Thursday. "We want people to be alert to these dodgy practices, but more importantly we want businesses to stamp it out altogether."

"We plan to introduce legislation that will impose penalties on businesses who choose to continue trying to rip off Australians."

Legislation to combat dishonest corporate practices was announced by the government last year, but it has not yet been put into effect. Australians are cautioned to exercise caution while registering for subscription services in the interim to prevent becoming victims of dishonest practices.

"These practices could cost Australians hundreds or even thousands, while also wasting a lot of time jumping through maze-like 'unsubscribe' hoops," the government said.

A report from the Consumer Policy Research Centre in October revealed that 32% Australians have experienced pressure to retain subscriptions they intended to cancel. Meanwhile, 10% admitted they gave up attempting to cancel and ended up paying for subscriptions longer than desired.

The decision comes on the heels of the U.S. introducing "click-to-cancel" rules, while Australia warns of deceptive subscription tactics, with 32% of consumers feeling pressured to keep unwanted subscriptions.