Subscription Terms Lawyers Adelaide: Auto-Renewal, Free Trials, Cancellation and the 2027 Subscription Rules
Subscription and membership terms in South Australia
Subscription and membership terms decide what happens when a plan renews and what a customer must do to leave it, and from 1 July 2027 the consumer law adds rules written for subscriptions. Talon Legal drafts and reviews subscription terms, membership agreements, free trial offers and cancellation processes for Adelaide businesses selling software, apps, content, boxes and memberships, and advises businesses signing up to them. Book a same-day free 30-minute consultation or call (08) 7094 2021.
Subscription terms key facts
| Issue | Position in South Australia |
|---|---|
| Unfair terms now | An unfair term in a standard form consumer or small business contract is void, and making a contract with an unfair term the business proposed, or relying on one, is a contravention (ACL section 23(1), (2A) and (2C)). |
| Automatic renewal | Renewal unless cancelled within 30 days before the end, with no notice of expiry, caused a significant imbalance (JJ Richards at [56](a)). |
| Refunds | Terms cannot exclude the consumer guarantees (section 64(1)). Booktopia was ordered to pay a $6,000,000 penalty for misstating customers' rights (section 29(1)(m)). |
| Maximum penalty now | Body corporate: the greater of $100,000,000 and three times the benefit (or 30% of adjusted turnover if the benefit cannot be determined). Anyone else: $2,500,000 (section 224). |
| Subscription contracts from 1 July 2027 | From 1 July 2027, rolling contracts and trials that convert to paid supply will be subscription contracts (section 48B), but contracts for payment in instalments will not (section 48C(1)(d)). |
| Disclosure and exit | From 1 July 2027, offers must disclose the renewal and exit terms (section 48D), and consumer and small business subscribers must have an easy way out, online if they signed up online (section 48F). |
| Unfair trading practices from 1 July 2027 | From 1 July 2027, conduct that manipulates consumers or unreasonably distorts their decisions, and causes detriment, will be prohibited (section 28B). |
| Existing subscribers | From 1 July 2027, sections 48B, 48E and 48F reach earlier contracts on renewal, continuation or variation (section 312). |
| First step | Same-day free 30-minute consultation. Call (08) 7094 2021. |
Need a subscription terms lawyer in Adelaide?
Our subscription terms lawyers in Adelaide act for businesses selling subscriptions and memberships, from software and online content to subscription boxes, gyms, clubs and services, and for businesses buying them. The Australian Consumer Law (ACL), in Schedule 2 of the Competition and Consumer Act 2010 (Cth), already governs renewal, price change, refund and cancellation terms. From 1 July 2027, the Competition and Consumer Amendment (Unfair Trading Practices) Act 2026 (Cth) adds rules for subscription contracts and for showing transaction based charges, and bans unfair trading practices. This page states the law current to 7 November 2026.
This guide is part of our online business practice. Related guides cover app terms and conditions, online sales terms and consumer law and software and SaaS agreements.
Free Consultation. Send us your terms and sign-up flow before the 2027 rules start. Book a same-day free 30-minute consultation or call (08) 7094 2021.
On this page
- What should subscription terms cover?
- Are automatic renewal terms lawful?
- Can a subscription business raise prices?
- What can free trial offers say?
- Can a subscription business refuse refunds?
- Can a business charge an exit fee or suspend access?
- What is a subscription contract from 1 July 2027?
- What must be disclosed when a subscription is offered?
- How must subscribers be able to cancel?
- Who do the 2027 rules protect?
- What will the unfair trading practices ban mean from 1 July 2027?
- What should a business check before signing up?
- How similar matters tend to play out
- How we act on subscription terms
- Case law
- Frequently asked questions
What should subscription terms cover?
The life of the subscription, from sign-up to exit. Good subscription terms and conditions say what the subscriber gets, how and when they pay, what happens at the end of each period, and how the price or features can change. They also deal with suspension, cancellation and refunds. Software and content subscriptions need a licence. Membership terms add booking rules, freezes, guest passes and conduct rules.
A subscription terms lawyer reads the terms with the sign-up page, checkout, emails and cancellation process, because what the customer sees on screen counts as much as the document.
Are automatic renewal terms lawful?
Yes, but an unfair one in a standard form consumer or small business contract is void (ACL section 23(1)). A term is unfair if it would cause a significant imbalance, is not reasonably necessary to protect the business’s legitimate interests, and would cause detriment if relied on (section 24(1)). The business must prove the term is reasonably necessary (section 24(4)).
In ACCC v JJ Richards & Sons Pty Ltd [2017] FCA 1224, small business contracts renewed for a further term unless the customer cancelled within 30 days before the end, with no notice that the term was ending. Moshinsky J accepted that this caused a significant imbalance, since the supplier is more likely than a small business to know when renewal is due ([56](a)). The terms were also in legal language and very small print ([60]). Transparency is part of the test (section 24(2) and (3)).
Since 9 November 2023, making a contract with an unfair term the business proposed, or relying on one, is a contravention (section 23(2A) and (2C)). For a body corporate, the maximum penalty is the greater of $100,000,000 and three times the benefit or, if that cannot be determined, 30% of adjusted turnover during the breach turnover period. For anyone else it is $2,500,000 (section 224(3) and (3A)).
Can a subscription business raise prices?
Only under terms that survive the unfair terms rules. A term setting the upfront price is outside them (ACL section 26(1)(b)). But a right to vary that price without giving the other party a right to terminate is a statutory example of a term that may be unfair (section 25(f)), as is a right for one party alone to change the characteristics of the goods or services (section 25(g)).
In JJ Richards, a right to raise prices for any reason, with no right for the customer to terminate or obtain a lower price, caused a significant imbalance ([56](b)). A price change clause is easier to defend if it gives notice and lets the subscriber leave before the new price applies.
What can free trial offers say?
Only what is true about the price and when payment starts. A false or misleading representation about price contravenes ACL section 29(1)(i). Misleading or deceptive conduct contravenes section 18(1).
Layout counts. In ACCC v Trivago N.V. [2020] FCA 16, Moshinsky J found that a top offer shown in green, in a relatively large font, with a green “View Deal” button, gave the impression that it was the best offer ([213]). A hover-over explanation did not cure that: consumers might never see it, and in any event it was opaque ([216]). The price after a free trial, and the date it starts, belong beside the button that starts the trial.
From 1 July 2027, a free trial that converts to paid supply, with a right to end it first, will be a subscription contract (section 48B(5)), and so will a discounted introductory period that steps up automatically (section 48B(6)).
From 1 July 2027, a business that displays a base price for goods or services ordinarily acquired for personal, domestic or household use must also show any transaction based charge, such as a booking fee, close to that price (section 48A(1) and (3)).
Can a subscription business refuse refunds?
Not where the law gives a remedy. Goods supplied to a consumer must be of acceptable quality (ACL section 54), and goods include computer software (section 2(1)). Services must be rendered with due care and skill (section 60). A term is void to the extent it purports to exclude, restrict or modify those guarantees (section 64(1)). A business customer is a consumer of services costing $100,000 or less (section 3(3) and regulation 77A).
Misstating those rights is a separate contravention (section 29(1)(m)). In ACCC v Booktopia Pty Ltd [2023] FCA 194, the terms required faulty items to be reported within 2 business days of delivery ([15]). Booktopia accepted that this represented customers had no remedy otherwise ([18]). Burley J ordered a $6,000,000 penalty.
In Valve Corporation v ACCC [2017] FCAFC 224, the Full Court rejected the argument that the guarantees did not apply under a contract with a foreign proper law ([103]). Parties cannot contract out of them ([107]).
Change-of-mind refunds stay a business choice, if the wording keeps faulty goods outside the refusal. For goods or services not ordinarily acquired for personal, domestic or household use, liability can be limited to repair, replacement or resupply, unless relying on the limit is not fair or reasonable (section 64A).
Can a business charge an exit fee or suspend access?
Within limits. A sum payable on default is tested by whether it is out of all proportion to the interest it protects, which may be business or financial (Paciocco v Australia and New Zealand Banking Group Ltd [2016] HCA 28, Kiefel J, with whom French CJ agreed, at [29]). ANZ’s late payment fees of $20 and $35 were not shown to be penalties, because the evidence showed real costs from late payment ([68], [69]).
A fee charged only to the customer for ending the contract is a statutory example of a term that may be unfair (ACL section 25(c)). An exit fee tied to a real cost, such as a discount given for a fixed term, is easier to defend.
Suspension works when the contract is clear. In AIBI Holdings Pty Ltd v Virtual Technology Services Pty Ltd [2022] FCA 696, an IT provider suspended helpdesk services for 36 days after its customer withheld payment ([2]). The contract let disputed amounts be withheld only once the dispute process had started, and it had not ([137] to [139]). Perram J held that the suspension was not a breach ([140]). A right for one party alone to suspend performance, or to decide whether the other is in breach, may still be unfair (section 25(a) and (h)).
What is a subscription contract from 1 July 2027?
From 1 July 2027, a contract that is not excluded will be a subscription contract if it fits one of four patterns, each with automatic payment and a right to end it (section 48B(1)): open-ended supply (section 48B(2)), a fixed period that rolls on unless stopped (section 48B(3)), a free initial period followed by payment (section 48B(5)), or an initial rate followed by a higher rate (section 48B(6)).
From 1 July 2027, excluded contracts will include leases, hire-purchase agreements, contracts for payment in instalments, childcare and school tuition (section 48C(1)). So, from 1 July 2027, a fixed price paid in instalments will sit outside the rules, while a membership that renews and charges again will sit inside them.
What must be disclosed when a subscription is offered?
From 1 July 2027, a supplier offering a contract that would be a subscription contract must, when making the offer, say that it would be one (section 48D(2)). From 1 July 2027, it must also give information about the payments, the period, any renewal, any notice needed to end it, and how to end it (section 48D(4)).
From 1 July 2027, unless regulations say otherwise, the disclosure must be legible, prominent, unambiguous and close to where the customer agrees, or comprehensible, audible and unambiguous a reasonable time before the customer could agree (section 48D(3)(c)). Online, the safer place is beside the sign-up button rather than behind a link.
From 1 July 2027, for prescribed consumer and small business subscription contracts, the supplier must also give prescribed information at prescribed times while the contract runs (section 48E). The content and timing will depend on regulations, so they are not stated here. From 1 July 2027, a pecuniary penalty may be imposed for a breach of these duties.
How must subscribers be able to cancel?
Today, the unfair terms and misleading conduct rules do the work. A right for only one party to terminate is a statutory example of a term that may be unfair (ACL section 25(b)). A cancellation page that misstates refund rights risks contravening section 29(1)(m).
The subscription cancellation law starts on 1 July 2027. From 1 July 2027, a supplier under a consumer or small business subscription contract must provide a way to end it, and each way must be easy to find, straightforward and need only the steps reasonably necessary to end it and protect the subscriber’s interests (section 48F(1)).
From 1 July 2027, one way must be online if the subscriber signed up online, or if the supplier offers online sign-up for the same kind of goods or services (section 48F(2)). So, from 1 July 2027, a gym that takes online sign-ups will need online cancellation even for members who joined at the desk. A path that forces a phone call, or several screens of retention offers, will be hard to defend.
Who do the 2027 rules protect?
From 1 July 2027, sections 48E and 48F will protect individuals acquiring wholly or predominantly for personal, domestic or household use (section 48G(1)). From 1 July 2027, they will also protect businesses on standard form contracts that employ fewer than 100 people, or had turnover under $10,000,000 in their last income year (section 48G(2)).
From 1 July 2027, a contract alleged to be standard form will be presumed to be one unless proved otherwise (section 48H), much as the unfair terms rules presume now (section 27(1)).
Existing subscribers are caught. From 1 July 2027, sections 48B, 48E and 48F apply to new contracts, and to earlier contracts from any renewal, extension, other continuation or variation on or after 1 July 2027 (section 312). For an open-ended monthly subscription, the safer course is to assume it is caught.
What will the unfair trading practices ban mean from 1 July 2027?
From 1 July 2027, a person must not engage in unfair trading practices (section 28B(1)). From 1 July 2027, that means conduct in connection with supplying goods or services to a consumer that manipulates the consumer, or unreasonably distorts the setting in which they decide, and causes or is likely to cause detriment (section 28B(2)).
From 1 July 2027, the statutory examples will include failing to disclose material information, disclosing it in a complex, unclear, ambiguous or overwhelming way, and using design elements in digital interfaces to put consumers under unreasonable pressure or obstruct their decisions (section 28B(6)). From 1 July 2027, the ban will not protect a body corporate or a business customer (section 28B(3) and (4)). From 1 July 2027, a breach will attract the section 224 maximums: for a body corporate, the greater of the section 224(3A) amounts, and for an individual, $2,500,000.
Trivago, decided under section 18, shows how the Federal Court reads design. Moshinsky J weighed fonts, colours and the button, and noted internal documents recognising that price layout significantly affects user behaviour ([213]). Hover-over text did not cure the impression ([216]). Countdown timers that reset and cancel buttons hidden in menus deserve a review before 1 July 2027.
What should a business check before signing up?
The renewal date and the way out. A small business contract is one where a party employs fewer than 100 people or had turnover under $10,000,000 in its last income year (ACL section 23(4)). Unfair terms in a supplier’s standard form small business contract are void (section 23(1)), and the contract is presumed to be standard form (section 27(1)).
Negotiating can change that. In AIBI, the customer had and used an effective opportunity to negotiate, so the supplier showed the contract was not standard form ([93], [96]). That was decided before the 2023 amendments. A court must now also weigh the supplier’s repeat use of the same terms (section 27(2)(ba)), and a contract may still be standard form despite a chance to negotiate minor changes (section 27(3)(a)).
Diary the renewal and notice dates, and read the price change and exit clauses before each renewal. A subscription terms lawyer can mark the clauses worth negotiating.
How similar matters tend to play out
Illustrations of how the law on this page combines on ordinary facts, not predictions. Outcome depends on the documents, the evidence and the court.
Lower range. An Adelaide coffee subscription’s terms say no refunds are given. A box arrives crushed. The term is void so far as it excludes the acceptable quality guarantee (sections 54 and 64(1)), and the wording risks contravening section 29(1)(m), as in Booktopia. Rewording the refund clause fixes it.
Middle range. A rostering software business sells annual plans to cafes on click-through terms that renew for 12 months unless cancelled 60 days before the end, with no reminder and a free hand on price. A cafe with 12 staff has a small business contract (section 23(4)). The terms resemble those in JJ Richards ([56](a), [56](b)), and relying on an unfair term is a contravention (section 23(2C)). A reminder, and a right to leave before a price rise, lower the risk.
Upper range. A fitness studio chain sells memberships online with a 14-day free trial that converts to fortnightly debits. The sign-up page shows “$0 today” in large green type, the fee is in small grey text, and members can cancel only in person. Read the way Trivago read layout ([213]), the page risks contravening sections 18 and 29(1)(i). From 1 July 2027, the trial will be a subscription contract (section 48B(5)), online cancellation will be required (section 48F(2)), and the design risks the unfair trading practices ban (section 28B(6)(d)). Existing members will be caught from any renewal or variation on or after 1 July 2027 (section 312).
How we act on subscription terms
Our subscription terms lawyers act for businesses selling subscriptions and memberships, and for businesses buying them. For a seller, the aim is terms that hold up now and are ready for 1 July 2027.
| Stage | What happens | What we do |
|---|---|---|
| Review | The terms and sign-up flow are sent. | Check renewal, price, refund and exit terms against the unfair terms rules and sections 18, 29 and 64. |
| Drafting | Terms and offer wording are prepared. | Draft the terms, including free trial wording and the disclosure needed from 1 July 2027. |
| Transition | The business prepares for 1 July 2027. | Identify which plans will be subscription contracts from 1 July 2027 and design the exit method. |
| Complaint | A customer or the regulator complains. | Advise on the term in dispute and the response. |
| Buying | The business signs up to a supplier's subscription. | Review the supplier's terms and negotiate where it counts. |
We cannot promise an outcome, and no lawyer can. We can make sure the terms and the sign-up flow are checked before a customer or the regulator tests them.
Every hour matters. Book a same-day free 30-minute consultation, or call (08) 7094 2021 now.
Subscription terms case law
None of the decisions below applied the subscription rules that start on 1 July 2027; each decided a point that applies to subscription terms now.
| Case | Court | Principle | Pinpoint |
|---|---|---|---|
| ACCC v JJ Richards & Sons Pty Ltd [2017] FCA 1224 | Federal Court | Automatic renewal and price variation terms caused a significant imbalance | [56](a), [56](b), [57], [60] |
| ACCC v Booktopia Pty Ltd [2023] FCA 194 | Federal Court | A term misstating consumers' rights contravened section 29(1)(m) | [15], [18] |
| Valve Corporation v ACCC [2017] FCAFC 224 | Full Federal Court | No contracting out of the consumer guarantees | [103], [107] |
| Paciocco v Australia and New Zealand Banking Group Ltd [2016] HCA 28 | High Court | A default sum is tested against the interest it protects | [29], [68], [69] |
| AIBI Holdings Pty Ltd v Virtual Technology Services Pty Ltd [2022] FCA 696 | Federal Court | The contract decided when services could be suspended | [93], [96], [137] to [140] |
| ACCC v Trivago N.V. [2020] FCA 16 | Federal Court | Layout shapes what an online offer conveys | [213], [216], [219] |
Case notes
ACCC v JJ Richards & Sons Pty Ltd [2017] FCA 1224
Moshinsky J declared eight terms unfair and void. He accepted that automatic renewal without notice of expiry, and price rises for any reason, caused a significant imbalance ([56](a), [56](b)).
ACCC v Booktopia Pty Ltd [2023] FCA 194
Booktopia accepted that its 2 business day notice term represented that customers needed to give that notice to have a remedy ([15], [18]). Burley J ordered a $6,000,000 penalty under section 29(1)(m).
Valve Corporation v ACCC [2017] FCAFC 224
The Full Court rejected the argument that a foreign proper law displaced the guarantees ([103]), and said parties cannot contract out of them ([107]).
Paciocco v Australia and New Zealand Banking Group Ltd [2016] HCA 28
Kiefel J, with whom French CJ agreed, asked whether a default sum is out of all proportion to the interest it protects ([29]). ANZ’s fees were not shown to be penalties ([68], [69]).
AIBI Holdings Pty Ltd v Virtual Technology Services Pty Ltd [2022] FCA 696
Perram J held that suspending services for unpaid invoices was not a breach, because the contract let the customer withhold disputed amounts only once the dispute process had started, and it had not ([137] to [140]).
ACCC v Trivago N.V. [2020] FCA 16
Moshinsky J found that the green top offer conveyed it was the best offer ([213]), and hover-over text did not dispel it ([216]). Trivago contravened section 18 ([219]).
Frequently asked questions
Are automatic renewal clauses legal in Australia?
Yes, but an unfair one in a standard form consumer or small business contract is void (ACL section 23(1)). In JJ Richards, renewal unless cancelled within 30 days before the end, with no notice of expiry, caused a significant imbalance ([56](a)).
When do the new subscription rules start?
On 1 July 2027, when the Unfair Trading Practices Act commences (section 2 of that Act). The unfair terms rules and the misleading conduct and consumer guarantee provisions apply now and will continue to apply.
Will customers have to be able to cancel online?
From 1 July 2027, yes, if they signed up online or the business offers online sign-up for the same kind of goods or services (section 48F(2)).
Will a free trial that becomes a paid plan be a subscription contract from 1 July 2027?
From 1 July 2027, yes, if payment starts automatically after the free period and the customer can end the contract first (section 48B(5)).
Can a subscription business refuse refunds?
Not for a failure of the consumer guarantees, which terms cannot exclude (ACL section 64(1)). A “no refunds” policy that suggests otherwise risks contravening section 29(1)(m).
Can a business increase the price of a subscription?
Only under a term that is not unfair. A price variation right with no matching right to terminate may be unfair (ACL section 25(f)).
Are early termination fees enforceable?
They can be, if the fee reflects a genuine interest of the business. A default sum is tested against that interest (Paciocco at [29]), and a fee charged only to the customer may be unfair (section 25(c)).
Do the 2027 rules apply to existing subscribers?
Yes, from any renewal, extension, continuation or variation on or after 1 July 2027 (section 312).
Do the subscription rules protect business customers?
From 1 July 2027, the exit rule covers businesses on standard form contracts with fewer than 100 employees or turnover under $10,000,000 (section 48G(2)).
What is a subscription trap?
A sign-up or cancellation design that makes joining easy and leaving hard. From 1 July 2027, subscriptions must have a straightforward way out (section 48F), and digital design that obstructs a consumer’s decision can be an unfair trading practice (section 28B(6)(d)).
Do I need a subscription terms lawyer?
For a business selling subscriptions or memberships, yes, before 1 July 2027. A subscription terms lawyer can check the renewal, price, refund and exit terms against the current law and the 2027 rules. A free 30-minute consultation will tell you where you stand.