Resource ● Last updated 26 August 2026 ● 11 min read
How to understand terms and conditions before signing up
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Is this resource for me?
This resource is for you if:
- You regularly click ‘I agree’ to terms and conditions (T&Cs) without reading the terms.
- You want to know what you’re legally signing up to before entering your personal or banking details.
- You want to cancel a service and aren’t sure what your rights are.
- You have been charged for a subscription you didn’t realise you agreed to.
What will I learn?
By the end of this resource, you’ll know how to:
- Spot the highest-risk clause types.
- Understand your Australian Consumer Law (ACL) rights.
- Cancel a subscription assertively.
- Make a complaint.
Words we use
Terms and conditions (T&Cs) also commonly referred to as ‘fine print’: the rules you agree to when you sign up for a service. They are a contract, even if you never read them.
Auto-renewal: a term that lets a company keep charging you when your subscription period ends, unless you cancel first.
Standard form contract: a contract written by the company on a take-it-or-leave-it basis, where you have no real chance to negotiate. Most online T&Cs are these.
Unfair contract term: a term that puts you at a serious disadvantage and isn’t needed to protect the company’s interests. Only a court can decide a term is unfair.
Unilateral variation: When a company changes the rules of your contract on its own, without needing your agreement.
Opt out: Telling a company to stop doing something, such as sending you marketing. You can opt out even if you agreed to it when you signed up.
Cooling-off period: A short time after buying something when you can change your mind and cancel. There is no automatic cooling-off right for online subscriptions in Australia.
True or false
PART 1: Which type of T&C problem is it?
Tip
You can use the search function in your web browser or PDF viewer by pressing Ctrl+F.
Examples:
- Free trial results in unexpected charges.
- Subscription continued after you tried to cancel the subscription.
- Charge appeared months after sign-up.
What to look for:
Language like: ‘will automatically renew’, ‘continuous subscription’, ‘cancel to avoid charges’.
What you can do:
Write to the company disputing the charge; send a request for cancellation and refund in writing (keep a copy); dispute any charges with your bank (called a ‘chargeback request’); lodge a complaint with state or territory consumer affairs agency; notify the ACCC.
Key search terms:
Renew, subscription, cancel, automatic renewal, free trial, notice period.
What this may achieve:
- Refund of unlawful charges, including that the bank could reverse the charges (chargeback).
- Cancellation confirmed in writing.
- Company required to give adequate future notice; state or territory consumer affairs agency could assist you.
- ACCC could separately investigate and take action against the company (it does not handle individual cases though) resulting in possible fines to the company.
Examples:
- You receive targeted advertising from companies you never gave your details to.
- You discover your data was sold to a third party. For example, an online travel agency shares booking details with hotels, airlines, or car hire companies to provide a holiday package.
What to look for:
Language like: ‘share with our partners’, ‘third-party advertising’, ‘we may transfer your information’.
What you can do:
- Request details of what data was shared and with whom.
- Request correction if inaccurate.
- Request that the company stop sending you direct marketing emails, texts, or instant messages citing the Spam Act 2003 (Cth), or for other types of marketing, citing Australian Privacy Principle (APP) 7.
- Lodge a complaint with the Office of the Australian Information Commissioner (OAIC) citing APP 6.
- Lodge a complaint with the Australian Communications and Media Authority (ACMA).
Note: These APPs apply to companies and other organisations that are covered by the Privacy Act 1988 (Cth) (called APP Entities). Not all businesses will be APP Entities. For example, small businesses that have an annual turnover of $3 million or less are generally not APP Entities, unless special circumstances apply.
Key search terms:
Third-party, transfer, data sharing, partners, advertisers, marketing, unsubscribe.
What this may achieve:
A unilateral variation clause allows a company to change the rules of its T&Cs on its own, without needing your permission. These clauses aren’t prohibited by law.
Examples:
Company changed its T&Cs in a way that harms you without adequate prior notice or providing you with an ability to exit the contract.
E.g. a 24/7 gym changes its opening hours, doubles the weekly fee from $12 to $24, and charges a cancellation fee without warning.
What to look for:
Language like: ‘we may change these terms at any time’, ‘by continuing to use the service you accept the new terms’, ‘we may update prices from time to time’.
What you can do:
- Write to the company disputing the change, including to state it is a material variation without consent.
- Request to exit the contract.
- Lodge complaint with state or territory consumer affairs agency.
- Notify the ACCC.
Key search terms:
Without notice/consent, continued use, revision, changes, at any time, price/fee change, update.
What this may achieve:
- You might be able to cancel the contract.
- A state or territory consumer affairs agency could assist you.
- ACCC could separately investigate and take action against the company (it does not handle individual cases though) resulting in possible fines to the company.
Cancellation and exit clauses affect how and when you can leave a contract. These kinds of clauses may be unfair under the Australian Consumer Law if they make it unreasonably difficult for you to leave the contract, even if you have done nothing wrong and simply want to stop using the service.
Examples:
- Company refuses to let you cancel.
- Ignores cancellation requests.
- Continues charging after you asked to cancel.
E.g. a flexible meal-kit service has no online cancel button, rejects phone cancellations, and requires 90 days’ notice by registered post while allowing the company to cancel immediately; cancellation requests are ignored and charges continue.
What to look for:
Language like: ‘minimum 12-month commitment’, ‘cancellation requires 90 days written notice’.
What you can do:
- Send a written cancellation request via email (keep a copy).
- Dispute any charges with your bank.
- Lodge complaint with ACCC or state consumer affairs agency.
Key search terms:
Cancellation, termination, end subscription, lock-in period, notice, renewal, non-refundable, automatic renewal.
What this may achieve:
- Bank may reverse charges (chargeback).
- A state consumer affairs agency could assist you.
- ACCC could separately investigate and take action against the company (it does not handle individual cases though) resulting in possible fines to the company.
Examples:
The T&Cs say “no refunds”, “use at your own risk”, or that the company is not responsible for loss – even when goods or services do not work properly, are unsafe, or are not fit for purpose.
E.g. a blender stops working after one use; poor plumbing makes a leak worse; a hotel package does not provide the included breakfast; a 12-month subscription is unavailable for four months; an online service stops working after one day but the company relies on an “all sales are final” clause.
What to look for:
Language like: ‘not responsible for any loss’, ‘liability is limited to the amount you paid’, ‘use at your own risk’, ‘no refunds after 24 hours’.
What you can do:
- Ask the company for a refund or compensation.
- Explain that consumer guarantees cannot be excluded
- Lodge a complaint with your state or territory consumer affairs agency.
- Notify the ACCC.
For more specific information about consumer guarantees, you can visit the ACCC’s website.
Key search terms:
Liability / limitation of liability, disclaimer, remedies, no refunds.
What this may achieve:
- A partial refund for reduced value or unavailable service.
- Compensation for reasonably foreseeable loss.
- Assistance from a consumer affairs agency
- Separate ACCC investigation and action.
However, a company generally does not need to provide you with a refund if you have changed your mind about the product or service after buying it.
PART 2: Change of mind and ‘cooling off’ periods
It is important to be aware that you may not be entitled to a refund or return for ‘change of mind’ issues. Businesses generally do not need to provide you with a refund if you have simply changed your mind. It is therefore important to read the T&Cs to understand what your rights are (if any) if you change your mind.
Some T&Cs might give you a ‘cooling-off’ period, meaning you can change your mind within a certain time period after you have purchased something.
There is no universal cooling-off right for online subscriptions in Australia. There is a requirement for a cooling-off period in limited circumstances only. For example, unsolicited door-to-door or telemarketing sales for which you have a cooling-off period of 10 business days under the ACL. You can read more about these limited circumstances on the Australian Competition and Consumer Commission’s website.
PART 3: Template letter for cancellation and refund request
You can use this template letter to send to an organisation to request a refund or cancellation. Adapt this template to your specific situation.
Fill in the highlighted fields with your own information.
To: [COMPANY NAME] Customer Service
Subject: Notice of cancellation and request for refund
Dear [Company name] Customer Service,
I am writing to formally cancel my subscription to [SERVICE NAME], my account is: [YOUR ACCOUNT NAME OR NUMBER — DO NOT INCLUDE YOUR PASSWORD] and to request a refund of [AMOUNT] charged on [DATE(S)].
I am requesting a refund on the following grounds: [Choose and adapt the most relevant:]
- You automatically renewed my subscription without my knowledge or consent.
- You have not honoured my cancellation request, a copy of which is attached to this letter.
- You have made material changes to the terms that I originally agreed to without my consent, and I do not consent to the new terms.
- You have made material changes to the nature of the services I originally signed up for, without my consent.
- There is a major problem with my service as it is [Choose and adapt the most relevant]:
- unsafe, including because it [describe why it is unsafe]
- very different from the description of the service, including because it [describe how it is different]
- has a serious problem, as it [describe the problem]
- has multiple problems, including that it [describe the problems], and I would not have bought this product if I knew about these problems
- can’t be used for its normal purpose because it [describe why]
- can’t be used for the purpose I specifically told you I needed the service for before I bought it, and you have failed to [repair / replace] the service within a reasonable time.
- The [AMOUNT] charged on [DATE(s)]:
- is more than the displayed price OR is more than the price we agreed
Yours sincerely,
[YOUR NAME]
[DATE]
[YOUR EMAIL]
Template letter to request a refund
Key takeaways
Check important terms
Check the important terms before you sign up: including automatic renewal, cancellation, refunds, data sharing, and changes to the contract.
Set reminders
Set reminders for free trials and renewals: note the end date, cancellation deadline, and renewal price before you sign up.
Keep evidence
Keep evidence of what you agreed to: save the terms, receipts, cancellation requests, and responses in case you need to dispute a charge or seek a remedy.
Look out for one-sided terms
Be cautious if the company can change prices, alter the service, or end the contract without giving you a similar right.
Check how information is used
Review who it may be shared with and use available options to opt out of direct marketing.
Know your rights
Australian Consumer Law and privacy rules may protect you, even if the terms and conditions say otherwise.
Act quickly
Contact the company in writing, keep copies of all communications, and escalate your complaint if the issue is not resolved.
Justice Connect is grateful to Telstra for their generous support to create this resource. Learn more about Telstra’s work building Australians’ digital skills and confidence so they can take part in the online world.
This resource was last updated on 26 August 2026. This is legal information only and does not constitute legal advice. You should always contact a lawyer for advice specific to your situation. Please view our disclaimer for more information.
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