A company's subscription auto-renewed without clear notice. Can I dispute the charge?

What the Law Says

Australian consumer law prohibits businesses from using unfair or misleading practices when selling subscriptions — especially around auto-renewal.

Under the Australian Consumer Law (ACL), businesses must give consumers clear, prominent, and upfront notice before a subscription auto-renews. This includes stating the renewal date, cost, and how to cancel — before the consumer agrees to the contract.

Section 47 of the ACL specifically bans 'unfair contract terms' in standard form consumer contracts. An auto-renewal clause may be unfair — and therefore void — if it causes a significant imbalance, isn’t reasonably necessary, and would cause detriment to the consumer.

Section 29(1)(m) makes it misleading or deceptive to represent that a consumer has agreed to a term (e.g., auto-renewal) when they haven’t been given proper notice or opportunity to opt out.

The ACL also limits cancellation fees: if a business charges a fee for cancelling a subscription, it must not exceed the reasonable cost of recovery — typically capped at $50 for most digital subscriptions, unless justified by actual costs.

Statutory Text

A term of a consumer contract is unfair if— (a) it would cause a significant imbalance in the parties’ rights and obligations arising under the contract; (b) it is not reasonably necessary in order to protect the legitimate interests of the party who would be advantaged by the term; and (c) it would cause detriment (whether financial or otherwise) to a party if it were to be applied or relied on.

— Competition and Consumer Act 2010 (Cth), Sch 2 — Australian Consumer Law, s. 47(1)

Statutory Text

A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.

— Competition and Consumer Act 2010 (Cth), Sch 2 — Australian Consumer Law, s. 18

Statutory Text

A person must not, in trade or commerce, in connection with the supply or possible supply of goods or services or in connection with the promotion by any means of the supply or use of goods or services, make a false or misleading representation that a person has agreed to a particular condition or term of a contract.

— Competition and Consumer Act 2010 (Cth), Sch 2 — Australian Consumer Law, s. 29(1)(m)

What to Do

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