5 Unfair Business Practices To Avoid In Australia In 2026

Running a small business in Australia in 2026 means you’re probably wearing a few hats at once: marketing, sales, customer support, operations, and (somewhere in the middle) legal compliance.

The tricky part is that what feels like “normal business” can sometimes cross into conduct that regulators and customers see as unfair. And in a world of online reviews, chargebacks, and fast-moving consumer expectations, even a small misstep can snowball into disputes, refunds, reputational damage, or regulatory action.

The good news is you can avoid most problems by spotting the risk areas early and tightening up how you sell, advertise, contract, and handle customer data. Below, we walk you through five unfair business practices to avoid in Australia in 2026, along with practical steps you can take to protect your business and build trust with your customers.

What Counts As An “Unfair Business Practice” In Australia?

In Australia, “unfair business practices” isn’t just about doing something unethical. It often refers to conduct that breaches (or risks breaching) laws like the Australian Consumer Law (ACL) and privacy and marketing rules.

In practice, conduct tends to be seen as “unfair” when it:

• misleads customers about price, quality, outcomes, availability, or their rights
• uses pressure tactics or hides key terms
• imposes one-sided terms or fees that customers didn’t genuinely agree to
• handles customer information in ways that customers wouldn’t reasonably expect
• causes avoidable harm because the business didn’t put basic compliance systems in place

Even if you didn’t intend to do the wrong thing, the impact on customers (and what you represented) can matter more than your intention.

And because more sales now happen through websites, marketplaces, social platforms, and automated billing tools, many “unfair practices” are really just process issues: your checkout wording, your refund flow, your email opt-ins, or your staff scripts.

The 5 Unfair Business Practices To Avoid In 2026 (And What To Do Instead)

Here are five of the most common (and costly) traps we see for Australian businesses, especially those selling online, offering subscription services, or operating in competitive consumer-facing industries.

1) Misleading Claims (Including “Accidental” Misleading Conduct)

In 2026, marketing is everywhere: social ads, influencer partnerships, landing pages, product descriptions, comparison charts, testimonials, and AI-generated copy. That also means more opportunities for your business to make a claim that’s inaccurate, incomplete, or presented in a way that gives customers the wrong impression.

Misleading conduct isn’t limited to outright lies. It can include half-truths, missing context, unrealistic “typical results”, or unclear disclaimers that customers won’t notice until after purchase. This is especially important if you’re making claims about:

• price and discounts (including “was/now” promotions)
• performance or outcomes (for example, health, fitness, finance, education, coaching)
• availability (“limited stock” or “only 2 left” messaging)
• timeframes (“delivery in 2 days” when that’s not realistic)
• “risk free” or “guaranteed” promises
• customer rights (for example, saying “no refunds” when the ACL may still apply)

Even internal misunderstandings can create misleading messaging. For example, your marketing team might promote a feature your operations team hasn’t actually implemented yet, or your customer support team might promise outcomes that aren’t part of your service.

If you want a clear framework for what can create legal risk here, it’s worth understanding misleading or deceptive conduct and how it shows up in everyday business communications.

What to do instead (practical steps):

• Audit your website, ads, and sales scripts for claims that are too broad, absolute, or hard to prove.
• Make qualifications clear and close to the claim (not hidden in a footer).
• Train staff to avoid over-promising, especially in customer support and sales calls.
• Keep evidence for key marketing claims (test results, supplier statements, screenshots, pricing history).

2) Confusing Or Inaccurate Pricing (Including Drip Pricing)

Pricing is one of the fastest ways to lose customer trust. Even where a pricing issue starts as a genuine mistake, it can quickly look like the business is trying to “trap” customers.

Common pricing practices that can become problematic include:

• displaying a low headline price but adding unavoidable fees later (for example, booking fees, service fees, admin fees)
• showing “from $X” pricing without clearly explaining what customers typically pay
• advertising a discount that isn’t genuine (for example, inflating the “was” price)
• not clearly stating whether prices include GST
• misleading unit pricing or minimum quantity requirements

In 2026, regulators and consumers are paying closer attention to “drip pricing” (where the price increases through the checkout process). Even if customers technically can abandon the cart, it can still be seen as unfair or misleading if the unavoidable price was not made clear upfront.

Being clear about advertised prices is one of the simplest ways to reduce disputes, refunds, and complaints.

What to do instead (practical steps):

• Make the total price (including unavoidable fees) visible before checkout where possible.
• Use plain language like “Total payable today” and “Ongoing monthly cost” for subscription products.
• If shipping varies, explain how it is calculated and when customers will see the final amount.
• Check that “sale” pricing can be justified and is time-limited as advertised.

3) Unfair Cancellation, Refund, Or “No Returns” Policies

Many small businesses create strict refund rules to protect themselves from misuse. That makes sense. But the risk is that a policy can become unfair when it:

• states “no refunds” without recognising ACL consumer guarantees
• charges cancellation fees that don’t reflect genuine costs
• makes cancellation unreasonably difficult (for example, requiring phone-only cancellations with limited hours)
• changes subscription terms without clear notice
• uses confusing wording that customers don’t understand at the time they buy

Cancellation issues are especially common with bookings (beauty, health, fitness, events), subscriptions (software, memberships, boxes), and online services (digital products, courses). Customers often complain not because a fee exists, but because it feels like it came out of nowhere, or it doesn’t match what the business actually lost.

If you charge (or want to charge) a cancellation fee, it’s important to think through both the legal and customer-experience side of the equation. Getting familiar with cancellation fees and how they interact with the ACL can help you set a policy that’s enforceable and less likely to cause backlash.

What to do instead (practical steps):

• Make cancellation terms clear before payment (not buried after purchase).
• Ensure any cancellation fee is connected to real loss (like staff time reserved or supplier costs).
• Use straightforward examples (for example: “Cancel within 24 hours = 50% fee”).
• Make cancellation processes reasonable and consistent across channels.

4) Aggressive Or Non-Compliant Marketing (Especially Email And SMS)

Marketing keeps your pipeline alive, but it can also create serious compliance risk if your business sends messages without proper consent, doesn’t offer functional unsubscribe options, or blurs the line between informational messages and marketing.

In 2026, customers expect control over their inbox and their data. They also expect businesses to respect boundaries, especially when they’ve only interacted once (like downloading a free guide or making a single purchase).

Key issues we often see include:

• adding customers to marketing lists automatically after purchase without clear consent
• pre-ticked consent boxes (or unclear consent wording)
• “unsubscribing” that doesn’t really unsubscribe (or takes weeks)
• affiliate or partner promotions sent to your list without appropriate disclosures
• poor record-keeping of how and when consent was obtained

Marketing compliance isn’t just about avoiding complaints. It also supports deliverability, brand reputation, and customer trust over time. Having a good grasp of email marketing requirements helps you build campaigns that perform without creating unnecessary legal exposure.

What to do instead (practical steps):

• Use clear opt-in language (and keep a record of it).
• Make unsubscribe links obvious and functional.
• Separate operational emails (like receipts) from marketing emails, and label them properly.
• If you use third-party agencies, make sure you control your customer list and approval of campaigns.

5) Mishandling Customer Data (Including Payment Details And “Surveillance” Issues)

Data is part of modern business, but mishandling it can quickly become an “unfair practice” in customers’ eyes-especially when they feel they weren’t properly informed, or the business collected more than it needed.

In 2026, we regularly see issues in three main areas:

• Payment data: storing card details without proper security controls or without clear customer understanding.
• Identity data: collecting extra personal information “just in case” (for example, copies of IDs) without a strong reason.
• Recording and surveillance: recording calls, using CCTV, or capturing images/video for promotional purposes without a clear legal basis or appropriate notices.

If your business stores customer payment information (directly or through a tool), it’s important to understand your obligations and risk profile when it comes to storing credit card details. Even if a payment provider handles most of the security, you still need to think carefully about what your business is doing, what you’re telling customers, and what happens if there’s a breach.

And if you record calls for “training and quality assurance”, or your business uses cameras in a public-facing environment, you should be across Australia’s recording laws and what consent looks like in practice.

Finally, if you use customer images in marketing (including testimonials, case studies, before-and-after content, event photos, or social reposts), it’s worth being careful about photography consent, especially where people may be identifiable.

What to do instead (practical steps):

• Only collect personal information you actually need to deliver the product or service.
• Tell customers, in plain language, what you collect, why, and who you share it with.
• Have a clear internal process for handling access requests, complaints, and data breaches.
• If you record calls or use CCTV, use visible notices and consistent scripts, and check state/territory rules.

How Do You Build A “Fair Practices” Compliance System In 2026?

Avoiding unfair practices is much easier when you treat it as a system, not a one-off legal check. In other words: don’t rely on memory, good intentions, or “we’ve always done it this way”.

Here’s a practical approach you can implement without slowing your business down.

Step 1: Map Your Customer Journey

Write down the key steps a customer goes through:

• first impression (ad, post, referral, marketplace listing)
• product/service page
• checkout and payment
• delivery or service performance
• renewals (if subscription)
• refunds/cancellations/complaints

This helps you find where confusion, pressure, or hidden terms might exist.

Step 2: Identify The “High-Risk” Touchpoints

For many businesses, the highest risk areas are:

• pricing displays and “sale” messaging
• subscription renewals and free trials converting to paid plans
• cancellation flows and fee triggers
• claims about results, guarantees, and comparisons with competitors
• data collection (forms, cookies, payment info, call recordings)

These are the areas where a small wording change can make a big difference.

Step 3: Train Your Team (And Your Tools)

Unfair practices often happen through inconsistent communication. Your website might say one thing, your staff might say another, and your automated emails might say something else entirely.

Practical training doesn’t need to be complicated. You can:

• give staff a simple “do and don’t” list for customer promises
• standardise refund/cancellation explanations
• review AI-generated marketing content before publishing
• ensure your booking and payment platforms match your policies (especially cancellation settings)

Step 4: Keep Records (So You Can Prove What Happened)

When there’s a complaint, you’ll want to quickly show what the customer saw and agreed to. That can include:

• screenshots of your checkout terms at the time of sale
• version history of your website terms and policies
• refund and cancellation communications
• consent logs for marketing opt-ins
• evidence supporting key marketing claims

This doesn’t just help in disputes. It also helps you fix problems quickly and consistently.

What Legal Documents Help You Avoid Unfair Practice Claims?

The right legal documents won’t magically make an unfair practice “okay”, but they do help you communicate transparently, set expectations early, and reduce misunderstandings that lead to disputes.

Depending on how your business operates, you may want to consider:

• Customer Terms and Conditions: sets out what you’re selling, what customers can expect, key limitations, and your cancellation/refund process.
• Website Terms: covers use of your website, acceptable behaviour, and key disclaimers (particularly relevant for online stores and service providers).
• Privacy Policy: explains how you collect, store, use, and disclose personal information (especially important if you run marketing campaigns or use analytics tools).
• Subscription Terms: clarifies renewals, billing cycles, how to cancel, and what happens at the end of a trial.
• Internal policies and scripts: helps your team apply consistent messaging (particularly for refunds, complaints handling, and advertising approvals).

It’s also important to make sure your documents match your real-world operations. If your policy says “same day refunds” but your system takes 10 business days, that gap can create frustration and complaints (and it can look misleading).

If you’re updating policies for 2026, it’s a good time to review how your payment tools, booking platforms, and customer comms actually work in practice, then align your terms with that reality.

Key Takeaways

• Unfair business practices in Australia often come down to how customers experience your pricing, marketing, cancellation process, and data handling-not just what you intended.
• Misleading claims can be accidental (especially with fast-moving online marketing), so it’s worth auditing your advertising and keeping evidence for key claims.
• Pricing issues (including drip pricing and unclear fees) are a common source of complaints, chargebacks, and regulator attention.
• Cancellation and refund policies should be clear upfront and aligned with genuine costs and consumer rights, particularly for bookings and subscriptions.
• Email/SMS marketing in 2026 needs clear consent processes, easy unsubscribes, and good record-keeping.
• Handling customer data fairly includes thinking about payment detail storage, call recording, and how you collect and use images or footage.

If you’d like a consultation on keeping your business practices compliant and customer-friendly in 2026, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.