Dark Patterns and the ACCC: Where Persuasion Becomes Illegal

Thursday, 1 October 2026

Dark patterns are user interface design choices that manipulate consumers into making decisions they did not intend. They include drip pricing (revealing hidden fees progressively through the checkout process), subscription traps (making it easy to subscribe but difficult to cancel), confirm-shaming (using guilt-laden language to discourage opting out) and misdirection (using visual hierarchy to steer users toward the more expensive option). On 2 July 2026, the Australian Parliament passed the Competition and Consumer Amendment (Unfair Trading Practices) Act 2026, which introduces a prohibition on these practices effective 1 July 2027. The Act represents the most significant expansion of consumer protection under the Australian Consumer Law (ACL) in over a decade.

What does the new law prohibit?

The Act introduces a general prohibition on practices that manipulate consumer decision making and cause harm. The Clayton Utz analysis of the legislation identifies three specific areas targeted by the reforms. The first is manipulative offers: conduct that distorts or unreasonably manipulates a consumer’s ability to make an informed decision. The second is drip pricing: businesses must display all mandatory transaction charges prominently and upfront when advertising a price, rather than revealing them progressively through the checkout process. The third is subscription traps: businesses must provide clear mechanisms for consumers to cancel subscriptions, with the cancellation process no more difficult than the sign-up process.

The penalties are substantial. The Allens analysis of the new regime notes that corporate penalties will be the greater of $100 million, three times the benefit obtained or 30 per cent of the body corporate’s adjusted turnover during the breach period. Individual penalties can reach $2.5 million. The ACCC will also have the power to issue infringement notices.

What enforcement has already occurred?

The ACCC has not waited for the new law to act against dark pattern conduct. Under existing ACL provisions, the Commission has pursued several high-profile enforcement actions. In June 2025, Dendy Cinemas paid a $19,800 penalty after the ACCC issued an infringement notice for failing to display the total price of movie tickets prominently, revealing an unavoidable booking fee only at the final stage of checkout. In September 2025, the ACCC commenced proceedings against JustAnswer for allegedly misleading consumers about the true cost of using its service. The Ashurst analysis of the reforms notes that the ACCC has a successful track record of pursuing businesses for drip pricing practices and that misleading surcharging has been an ACCC compliance priority for 2025-26. In December 2025, proceedings were commenced against HelloFresh and Youfoodz for alleged subscription trap conduct.

Where is the line between persuasion and manipulation?

Ethical persuasion helps consumers make an informed decision that serves their interests. Manipulation undermines the consumer’s ability to make that decision freely. The boundary is consent and transparency. A discount offer that is prominently displayed with clear terms is persuasion. A discount countdown timer that resets every time the page is refreshed is manipulation. A prominently placed “subscribe” button with a clear description of what the consumer is signing up for is design. A subscribe button that is visually prominent next to a barely visible “no thanks” link in grey text is a dark pattern.

The Jackson McDonald analysis of the new provisions notes that the ACCC is expected to prioritise conduct causing widespread or systemic consumer harm. Businesses that rely on persuasion techniques that cross the line into manipulation face not just regulatory risk but reputational damage that can outlast any financial penalty.

What should businesses do now?

The new provisions commence on 1 July 2027, but the ACCC’s existing enforcement activity shows that waiting until commencement to review practices is a risk. Businesses should undertake an end to end review of the consumer experience to identify any aspect that could be considered manipulative. For businesses operating online, this means reviewing the digital interface and user experience for dark patterns: are fees disclosed upfront? Can subscriptions be cancelled as easily as they are started? Is the visual design steering consumers toward options they did not intend to choose?

How can professionals understand the boundary between influence and manipulation?

AcademyGlobal (AG), the Chartered Institute of Procurement & Supply (CIPS) Centre of Excellence for Australia, New Zealand and Southeast Asia, delivers programs that develop influence as an ethical and effective professional capability. AG’s Influencing to Achieve Better Outcomes program addresses how to build support for decisions, manage resistance and influence stakeholders through transparency and preparation rather than manipulation. For professionals in procurement roles where persuasion and negotiation are core activities, the program provides the framework for ensuring that influence operates within ethical boundaries. AG’s Leadership & Management Skills programs address the broader leadership disciplines that ethical influence depends on.

The line between persuasion and manipulation has always mattered ethically. From 1 July 2027, it will also matter legally.

Frequently asked questions

What are dark patterns?
Dark patterns are design choices that manipulate users into actions they did not intend. Examples include drip pricing (hidden fees revealed at checkout), subscription traps (easy to sign up, hard to cancel) and confirm-shaming (guilt-laden language to discourage opting out).
When does the new law take effect?
The Competition and Consumer Amendment (Unfair Trading Practices) Act 2026 passed Parliament on 2 July 2026. The new provisions commence on 1 July 2027.
What are the penalties for dark patterns under the new law?
For corporations: the greater of $100 million, three times the benefit obtained or 30 per cent of adjusted turnover. For individuals: up to $2.5 million.
Is drip pricing already illegal in Australia?
Drip pricing can already breach existing ACL provisions on misleading conduct. The new law strengthens this by requiring businesses to display all mandatory transaction charges prominently and upfront.
Where can I learn about ethical influence?
AcademyGlobal’s Influencing to Achieve Better Outcomes program develops influence as an ethical professional capability built on transparency, preparation and stakeholder understanding.

References

1. DLA Piper, “Australia Introduces New Unfair Trading Practices Laws,” July 2026
2. Clayton Utz, “Dark Patterns, Online Traps and Confirm Shaming,” February 2026
3. Allens, “Australia’s New Unfair Trading Practices Regime,” July 2026
4. Ashurst, “Play Fair: Unfair Trading Practices Ban Coming in 2026,” November 2025
5. Jackson McDonald, “New Unfair Trading Practices Raise the Bar for Consumer Compliance,” August 2026