‘Un-Australian’: Major warning over ‘subscription traps’ as Aussies shape up for New Year’s resolutions

Australians are being urged to watch out for so-called “subscription traps” as they make moves to manifest their New Year resolutions.

The government’s stark notice comes amid anticipation of new memberships and subscriptions – including gym memberships – and the ongoing financial commitments required to maintain them.

But many memberships and subscriptions are easier to sign up for than they are to cancel, whether it be because of subtle cancellation clauses, arduous processes or automatic renewals.

Assistant Treasurer Stephen Jones was scathing of the practice.

“It is frankly un-Australian for businesses to engage in this kind of tricky behaviour and our government says enough is enough,” he 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.”

Mr Jones has led the federal government’s charge on tightening up trading practices, with legislation set to be introduced later this year to slap “penalties on businesses who choose to continue trying to rip off Australians”.

Research has found the vast majority of Australians have had bad experiences trying to get out of subscriptions.

One in three Australians have felt pressured into keeping a subscription, according to research by the Consumer Policy Research Centre.

The think tank also found 48 per cent of Australians spent more time than they meant to trying to cancel a subscription.

The same research noted 10 per cent have given up.