SaaS advertising
and subscription rules.

There's a common belief that subscription traps only become illegal in 2027. Not true. The ACCC took eHarmony to court under the existing Australian Consumer Law, and on 25 August 2026 the Federal Court found the dating site had broken it. According to the ACCC's summary of the judgment, eHarmony:

• advertised 'free dating' when members couldn't keep talking to each other without paying
• didn't clearly disclose that premium memberships renewed automatically
• suggested one-month memberships were available when the shortest term was six months
• told users they could cancel early when they couldn't
• quoted monthly prices without a mandatory extra monthly fee
• didn't show the minimum total price as one figure next to the monthly price

eHarmony isn't a software company in the usual sense, but every one of those findings maps straight onto SaaS. 'Free forever' plans that can't do the basic job. Annual plans sold with a monthly price and the 12-month total in small print. 'Cancel any time' on the pricing page when the system only lets people cancel at the end of a term. Ashurst's analysis notes the court described the 'free' basic membership as a 'gateway to subscription', and that consumers were given a firmly established impression of a fixed plan at an advertised price, with the renewal terms disclosed late in the purchase process.

The test the ACCC applies is the overall impression. Its own guidance says fine print must not conflict with the overall message, and that a 'free' offer misleads when conditions turn up later. A footnote doesn't fix a headline.

Raising prices is fine. How you tell people is where it goes wrong. In October 2025 the ACCC sued Microsoft over the Microsoft 365 price rise that came with Copilot. The annual Personal plan went from $109 to $159 and Family from $139 to $179, and the ACCC alleges Microsoft's emails left out the cheaper 'Classic' plans, which only appeared once subscribers started to cancel. These are allegations. In November 2025 Microsoft apologised and offered refunds for the difference.

The lesson for any SaaS company: when you change a plan, tell existing customers every option they have, including a cheaper plan if one still exists, in the same email. 'Accept the new price or cancel' when there's a third door is exactly the kind of framing that draws the ACCC's attention.

The Competition and Consumer Amendment (Unfair Trading Practices) Act 2026 passed in July 2026 and starts on 1 July 2027. For subscriptions, which include free trials that convert to paid and discounts that step up, Allens' summary says the supplier must disclose before sign-up:

• that it is a subscription contract
• what the subscriber has to pay, and the contract period
• how it renews or continues, and any notice needed to end it
• how to cancel, which must be easy to find and straightforward, and online if sign-up was online

The subscription rules cover consumers and small businesses on standard form contracts: a business with fewer than 100 staff and/or turnover under $10 million. For a SaaS company selling to tradies, clinics and small agencies, that's most of your customer list. Cancellation steps must be limited to what's reasonably necessary, so a compulsory exit survey or a retention phone call is unlikely to pass.

Reminders before a trial ends or a plan renews may be set by regulation. Law firm summaries differ on how firm that is: Clayton Utz expects regulations requiring timely reminders, while Allens says the Government hasn't yet said what, if any, ongoing notices will be required. Build the reminder anyway. It costs little and it's what customers expect.

Maximum penalties for a company are the greater of $100 million, three times the benefit, or 30% of turnover during the breach.

Tick what's true of your sign-up, pricing and cancellation today. The check sorts each gap into a risk now or a change needed by July 2027.

Many SaaS companies copy terms of service from a big US vendor. That can be a problem here. Since 9 November 2023, businesses can be penalised for proposing or relying on unfair terms in standard form contracts with consumers or small businesses, those with fewer than 100 staff or turnover under $10 million. The ACCC's example of a risky term is a power to change the product or service on your own say-so, and it suggests that if you need that power, customers should be able to leave without penalty when you use it. Maximum penalties for a company are the greater of $50 million, three times the benefit or 30% of turnover.

If consumers can buy your plan, show one total price including GST. The ACCC's component pricing rule says the total must include taxes like GST and be displayed as prominently as any part of the price. '$15 a month + GST' on a consumer plan isn't enough on its own. If you sell only to businesses, ex GST pricing is common, but check with an adviser how the rules apply to your plans.

Onboarding emails that only help someone use what they've signed up for are one thing. The moment they push an upgrade or a paid add-on, treat them as marketing. The ACMA says marketing messages need consent, accurate sender details and an unsubscribe honoured within 5 working days, and you can't send an email asking for consent.

Product analytics, session recordings and ad pixels all collect information about people. The OAIC has guidance on tracking pixels and privacy obligations. Businesses with annual turnover of $3 million or less are usually exempt from the Privacy Act, but many SaaS companies opt in or are covered because their customers require it. And from 10 December 2026, covered organisations must explain in their privacy policy decisions made by computer programs that could significantly affect people. If your software scores, screens or approves people, that's you.