Legal Insights

Consumer Markets and Retail

• 12 February 2026 • 6 min read

The ACCC’s work in consumer markets and the retail sector during 2025 was marked by a renewed focus on pricing transparency, unfair ‘no-refund’ policies, and unfair contract terms more broadly in areas such as gym membership, food delivery, and streaming services. Enforcement activity targeted misleading promotional conduct by major retailers, while administrative action and public warnings were used to address systemic issues in online sales and subscription models. 

The ACCC also contributed to broader policy reform, including the Grocery Sector Inquiry, digital platform regulation and the ‘Right to Repair’ agenda. While the ACCC made visible progress in several areas, we haven’t yet seen test cases in the area of unfair contract terms, much progress in the ongoing litigation against the major supermarkets or the detail of proposed prohibitions on unfair trading practices.

Key enforcement activity

The Good Guys and Webjet

Misleading pricing proceedings – sizeable penalties

In November 2025, the Federal Court ordered The Good Guys to pay $13.5 million for failing to disclose key conditions in its “bonus gift card” offers. Similarly, Webjet, a popular online travel site, was fined $9 million for advertising airfares in a misleading way by displaying false “discount” claims and omitting mandatory fees in emails, on its website and on social media. These outcomes underscore the ACCC’s focus on misleading discount and surcharge practices in the retail sector and are also relevant to its broader “cost of living” focus. 

Industry-wide compliance "sweeps" 

Refund policies and “was/now” pricing 

Last year, the ACCC conducted several proactive compliance sweeps in the retail sector, building on early success with this approach for greenwashing claims. 

  • In February, the ACCC reviewed over 2,000 e-commerce websites for unfair refund terms and identified many instances of stores imposing unlawful no-refund policies or hidden conditions.
  • In November (ahead of ‘Black Friday’ sales), the ACCC publicly warned dozens of retailers about misleading discount strategies (such as “up to 50% off” deals and deceptive countdown timers). 

Consistent with the results of other similar sweeps, they did not lead to new court cases, but multiple businesses voluntarily corrected their practices and provided the ACCC with intelligence for future enforcement and a small number of infringement notices were also issued. 

Market studies and other policy developments

  • Grocery Sector Study

    The long-running Grocery Sector Study remains at the forefront of ACCC market inquiries, with its final report informing the implementation of reforms in 2025 and the design of a second tranche of reforms addressing pricing transparency and regional supply.

  • Small Business Survey

    The ACCC's Small Business Survey was updated in late 2024 and continued to inform Government policy settings last year. We expect the 2025 survey update to reveal shifting sentiment among participants. 

  • Right to repair

    The ACCC has contributed to broader consumer law reform processes, including the Productivity Commission’s Right to Repair inquiry, where it supported reforms to address legal and practical barriers to repair and highlighted the impacts on consumers and small businesses.

  • Digital Platforms Services Inquiry

    While digital platforms are addressed in a separate chapter, last year, the ACCC continued its Digital Platform Services Inquiry, which is likely to have some implications for the retail sector. For example, the Commission explored the competitive impact of loyalty schemes (such as ‘flybuys’ and ‘Everyday Rewards’), digital wallets, and various “buy now, pay later” services. The ACCC Chair, Ms Gina Cass-Gottlieb, also flagged potential future scrutiny of the gig economy’s intersection with retail, particularly in food delivery and fast fashion. 

  • Consumer Data Right

    Throughout 2025, the ACCC engaged in policy discussions on extending the Consumer Data Right (CDR) to the retail sector. While no retail-specific CDR scheme was launched, the Commission expressed support for enabling consumers to share loyalty or purchase data to access better deals. 

Unfair contract terms and unfair practices 

The ACCC also continues its broader campaigns across consumer retail to tackle unfair contract terms (UCT) and misleading subscription traps under the “new” unfair contract regime. The ACCC sent notifications to operators in sectors such as gym membership, food delivery, and streaming services in late 2025, with subsequent UCT proceedings mooted. We expect to see additional publicity on the results of these efforts later this year concerning the actions taken by the ACCC and the administrative resolutions reached with targeted businesses. 

In parallel to its efforts to promote the UCT regime, the ACCC continued to advocate for a broader prohibition on “unfair trading practices” under the Australian Consumer Law (ACL). This proposed reform would target manipulative conduct – sometimes referred to as ‘dark patterns’, that are currently claimed to fall outside of existing protections – though that is debatable. The proceedings against Microsoft and will shed light on the extent of current proceedings for this type of conduct and the need for further legislative reform.

Assessment against priorities 

In 2025, the ACCC made solid progress on its stated priorities for the consumer markets & retail sector, though some matters remain incomplete. It delivered meaningfully on supermarket sector competition and pricing transparency, completing the Grocery Inquiry and continued its proceedings against Australian supermarkets for misleading discount claims. The enforcement actions against The Good Guys and Webjet also demonstrated a clear focus on misleading pricing and surcharges. However, the absence of test cases under the new UCT regime marked a gap in enforcement, with the ACCC instead focusing on compliance engagement and preparatory work. Similarly, while the regulator advocated for a general prohibition on unfair trading practices, no legislative progress was made in 2025. Finally, small business survey results show that their grievances remain stubbornly unchanged, and other issues (such as the right to repair) are still not working as well as the ACCC might hope. In short, the ACCC still has a bit to do to deliver on this aspect of its overall responsibilities.

Looking forward 

In 2026, we might see:

  • The ACCC continue with further industry-wide “ACL blitzes” but this year focussing on subscription traps, misleading pricing and (again) unfair contract terms with targeted actions against (for example) subscription models (food, streaming, gym services) that fail to disclose cancellation rights.
     
  • New market studies, such as a follow-up grocery inquiry on regional supply and pricing floors, the publication of the final Digital Marketplaces report with reform proposals and new studies on the impact of the gig economy in other consumer market settings.
     
  • The commencement of some test cases to clarify the scope of the new UCT regime, including the definition of “small business”, and targeting sectors such as gyms, streaming and online retail, to clarify the law’s application and drive compliance.
     
  • Engagement in different policy and areas of potential law reform, such as further mooted changes to the ACL, looking at codified subscription rights, mandatory unfair contract terms for second-hand goods and consumer-to-business contracts.
     
  • The ACCC is seeking to leverage data portability to improve competition in sectors like groceries and e-commerce – potentially with reforms like an expanded CDR right and some form of opt-in CDR consent architecture.
     
  • A continued focus by the ACCC for the “right to repair” including possible action in the motor vehicle sector on this issue, as well as its expansion to farm vehicles and machinery;
     
  • An ongoing focus on “cost of living”, which we understand to mean (for the most part) alleged “price gouging” by the major supermarkets. 

Read more from Watchdog Recap: 2025 ACCC Year in Review

Our annual examination of enforcement and regulatory activity by the Australian Competition and Consumer Commission.

Shaun Temby

Shaun has over two decades of expertise in commercial disputes, competition, and consumer law and provides strategic legal solutions to franchising and consumer markets clients.

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