Explaining recurring charges at checkout

Before a shopper authorises checkout, show the amount due now, when later charges begin, their amount and frequency, any minimum commitment, and whether billing renews automatically. Put those terms beside the plan choice and repeat the key amounts at order review.

Show the full payment schedule

A monthly price can hide a longer commitment. In August 2026, the Federal Court found that eHarmony breached the Australian Consumer Law (ACL) by failing to display the minimum total price as a single price alongside monthly subscription prices.

For a fixed minimum period, display the minimum total prominently alongside the monthly figure. For an indefinite subscription, state the ongoing price and billing interval without inventing a lifetime total.

A clear format is: “$[amount] due today; then $[amount] every [frequency] from [start date], for at least [minimum term] ([minimum total]); then renews at [renewal price and frequency] unless cancelled.” Fill each bracket with the actual terms.

An introductory price needs a clear change point. State when the standard price begins and what it will be.

For a trial, explain eligibility, whether payment details are collected, when the first paid charge occurs and what the shopper must do to avoid it under the offered terms. Do not describe a trial as free to someone who will be charged immediately.

The ACCC said eDreams advertised a $0.00 or “FREE” 15-day trial without adequately stating it was only for first-time subscribers. From May 2024, eDreams checked eligibility after checkout and immediately charged consumers found ineligible.

Make renewal and cancellation terms visible

Say whether the plan renews automatically, for how long, and at what price. The Federal Court found eHarmony gave consumers the false impression that selected 6, 12 or 24-month premium memberships ended then, when they automatically renewed for a 12-month lock-in at up to five times the initial price.

Explain how cancellation affects future charges and any existing minimum commitment. “Cancel anytime” can mislead if cancellation stops renewal but does not end an amount already owed.

The ACCC has warned online retailers to display ongoing membership fees clearly and prominently. It describes a subscription trap as treating a single purchase as consent to a paid ongoing subscription without adequately disclosing its ongoing fees.

A recurring membership bundled with a one-off purchase should appear as a distinct choice with its ongoing price. The order review should distinguish the one-off amount from the subscription schedule. A link to full terms can add detail, but key future charges should be visible before payment.