Staff Reporter
17 November 2025, 12:02 AM
Tougher penalties target repeat offenders and cheats.Big changes are coming for businesses that mislead shoppers, with the Government set to sharply increase penalties under the Fair Trading Act.
The shift will affect Hibiscus Coast residents who rely on clear pricing and honest advertising from both big chains and local operators.
Economic Growth Minister Nicola Willis says serious offenders could soon face fines in the tens of millions of dollars when they gain large sums from breaking the law.
Legislation due early next year will lift the current $600,000 maximum to the highest of three times the commercial gain, the value of the transactions, or $5 million.
“Presently, there are circumstances in which the gains to be made from breaching the Act can outweigh the penalties for breaching it. The new regime will eliminate the financial incentives for breaching the Act,” Nicola Willis says.
The move follows a 23 per cent rise in complaints to the Commerce Commission over the past five years, including recent cases involving misleading pricing at Pak’nSave and Woolworths.
Between July 2020 and July 2025, the Commission received more than 48,000 complaints covering inaccurate pricing, refund refusals, subscription traps and misleading advertising.
Most breaches will shift to a civil penalties regime, making it easier for the Commerce Commission to act without meeting the higher criminal standard.
Serious or deliberate offences will stay criminal.
Commerce and Consumer Affairs Minister Scott Simpson says the tougher approach will protect consumers and stop repeat offenders gaining an unfair edge over honest businesses.
The changes are expected to become law late next year after select committee consultation.
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