Question 1

What are the Australian Consumer Law rules for subscription businesses?

Accepted Answer

The ACL requires clear disclosure of subscription terms, including the total minimum cost, auto-renewal terms, and cancellation process. Since March 2024, the ACCC has been particularly focused on "dark patterns" in subscription sign-up and cancellation flows. You must make cancellation at least as easy as sign-up - no phone-only cancellation if sign-up is online. Auto-renewal notices must be sent before each renewal period, clearly stating the renewal date, amount, and how to cancel. Our AI sends compliant renewal notices automatically and provides one-click cancellation to meet ACCC expectations.

Question 2

What are the auto-renewal disclosure requirements?

Accepted Answer

Under the ACL, businesses must clearly disclose auto-renewal terms at the point of subscription sign-up and before each renewal. The disclosure must include the renewal date, the amount that will be charged, the frequency of future charges, and clear instructions for cancellation. Many subscription businesses are non-compliant because they bury renewal terms in fine print. Our AI generates compliant pre-renewal notifications (typically 7 days before charge) via email and SMS, with a clear cancel link. This reduces involuntary churn while keeping you on the right side of the ACCC.

Question 3

How does AI predict which subscribers are about to churn?

Accepted Answer

Our churn prediction engine analyses 40+ behavioural signals including login frequency decline, feature usage changes, support ticket patterns, billing failures, and engagement drop-offs. Each subscriber receives a churn risk score updated daily. When a subscriber crosses the risk threshold, the system triggers automated retention actions - personalised emails, special offers, or proactive outreach from your retention team. The model learns from your specific data, so prediction accuracy improves over time. Most clients see 70-85% accuracy in identifying at-risk subscribers 30 days before they cancel.

Question 4

What are the cooling-off period rules for subscriptions in Australia?

Accepted Answer

Under the ACL, consumers have a 10-business-day cooling-off period for door-to-door sales and telephone sales. Online subscriptions do not have a mandatory cooling-off period, but many Australian subscription businesses offer a voluntary trial or cooling-off period as a competitive advantage. For unsolicited sales (e.g., phone upsells), the cooling-off period is mandatory. Our AI tracks the acquisition channel for each subscriber and automatically applies the correct cooling-off rules, preventing charges during the protected period and sending the required written confirmation within 5 business days.

Question 5

How does the dunning process work for failed payments?

Accepted Answer

Failed payments cause 20-40% of all subscription churn (involuntary churn). Our AI-powered dunning process runs a sophisticated retry sequence: first retry at 24 hours (catches temporary bank holds), second retry at 72 hours (catches payday timing), third retry at 7 days (catches card replacement delays). Between retries, subscribers receive friendly payment update reminders with a secure link to update their card details. The system detects the failure reason (insufficient funds, expired card, bank decline) and customises the communication accordingly. This recovers 40-60% of initially failed payments.

Question 6

What are the refund obligations for subscription businesses?

Accepted Answer

Under the ACL, consumers are entitled to a refund if services are not provided as described, not fit for purpose, or not supplied with due care and skill. For subscriptions, this means if your service experiences significant downtime or degraded quality, affected subscribers may be entitled to partial refunds for the affected period. Our AI monitors service-level agreements (SLAs), calculates pro-rata refund amounts for qualifying incidents, and can process refunds automatically or queue them for approval. Proactive refunds for service issues actually reduce overall churn - subscribers appreciate honesty.

Question 7

How does AI handle GST on digital subscriptions sold to Australian consumers?

Accepted Answer

Digital subscriptions sold to Australian consumers are subject to GST regardless of where the provider is located. For Australian businesses, this is standard GST treatment. For overseas suppliers, the "Netflix tax" (effective since July 2017) requires GST registration if Australian turnover exceeds $75,000. Our AI handles GST calculation, collection, and reporting automatically for all subscription billing. It correctly handles the complexity of prorated charges, partial refunds, credits, and upgrades/downgrades - each of which creates GST adjustment events that must be tracked for BAS reporting.

Question 8

How does the system handle privacy consent for churn analytics?

Accepted Answer

Under the Australian Privacy Principles (APPs), using subscriber data for churn analytics requires proper consent and transparency. Our system handles this through three mechanisms: (1) clear privacy disclosure at subscription sign-up explaining that usage data will be analysed to improve service quality and personalise offers, (2) granular consent options allowing subscribers to opt out of marketing communications while still receiving essential service updates, (3) data minimisation - we only analyse the signals needed for churn prediction, not the content of subscriber activity. All analytics are performed on Australian servers and subscriber data is never sold to third parties.

Reduce Churn. Maximise LTV.

Subscriber Health

The Silent Revenue Killer

How Much Is Churn Costing You?

Current State

With AI Retention

How AI Fights Churn at Every Stage

Predict Churn

Intervene Early

Recover Payments

Win Back Lost

Complete Subscription Intelligence

Churn Prediction Engine

Failed Payment Recovery (Dunning)

Upgrade & Downgrade Automation

Usage-Based Billing

Win-Back Campaigns

Cohort Analysis

Renewal Automation

Revenue Recognition

ACL Subscription Compliance

Frequently Asked Questions