Australia's Department of the Treasury has issued a consultation paper on extending unfair trading practices protections to small businesses and franchisees. The paper focuses on whether the general prohibition on unfair trading practices proposed in the Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 for consumers should also apply when small businesses buy goods or services as consumers, and it also seeks updated evidence on whether further Australian Consumer Law protection is needed for unfair practices in business-to-business relationships. Under the proposal, a small business would receive the same protection as a consumer against conduct connected with supply that manipulates it or unreasonably distorts its decision-making and causes detriment. Treasury says the extension would be limited to acquisitions that already fall within the Australian Consumer Law definition of consumer, including purchases below the AUD 100,000 threshold, and would use the existing small business threshold of fewer than 100 employees or annual turnover below AUD 10 million. The paper also asks for evidence on practices raised in earlier consultations such as dark patterns, failure to disclose material information, pressure to accept unfair terms, threats of commercial retaliation, withheld or late payments, unilateral changes to pricing or supply terms, and other conduct in sectors including franchising, agriculture, construction and automotive retailing, alongside existing ACL protections, competition law and recent industry code reforms. Submissions are due by 10 July 2026. Treasury expects to prepare a Decision Regulation Impact Statement after the consultation to inform the final design of reforms, and any proposal to amend the Australian Consumer Law would be considered with states and territories. After options to amend the ACL are settled, the Government will also consider whether corresponding changes are needed for financial services under the Australian Securities and Investments Commission Act 2001.
Department of Treasury (Australia)2026-06-03
Australia's Department of the Treasury launches consultation on extending unfair trading practices protections to small businesses and franchisees
Australia’s Treasury is consulting on extending a proposed general prohibition on unfair trading practices to small businesses and franchisees acquiring goods or services as consumers under the Australian Consumer Law. The paper seeks views on applying existing consumer and small business thresholds and invites evidence on unfair business-to-business practices across sectors including franchising, agriculture, construction and automotive retailing. Treasury will use the consultation to inform potential amendments to the Australian Consumer Law and related changes to the Australian Securities and Investments Commission Act 2001.