ACCC Ready To Bust Restaurants For Deceptive Pricing

Last year, we told you how the ACCC was cracking down on deceptive component pricing (not making it clear all the elements involved in a given advertised price). Since then, the regulator has cracked down on travel agents ignoring the law, and now it is going after restaurants.

Picture by stevensnodgrass

One of the key requirements of the component pricing law is that individual total prices must be identified, and that blanket service charges can't be listed separately on menus and the link. Or as ACCC chairman Graeme Samuel put it:

The practice of putting a note such as '10 per cent surcharge applies on public holidays' at the bottom of the menu but without the surcharge being included in a single price for the item is in breach of the law.

So far, the ACCC has been monitoring restaurants to identify breaches, but now it figures any remaining offenders have had long enough to get their act together. Tourist traps, you have been warned.



    Sure it's one thing to say consumers should be made aware of the total price of a menu item, but in reality it's borderline ridiculous. If upon entering a store to order you happen to miss the likely three 40pt signs mentioning the surcharge, and still feel hard done by, imagine how deceived you will feel when the surcharge has been make transparent such that you aren't even aware it's there. The ACCC is practically oking the idea of fluctuating prices to rip off consumers.

      But transparent surcharges are already commonplace. Most retailers include credit card fees they have to pay into the price of their goods. If you don't ask for a discount for cash then you're paying that surcharge even when paying by cash. Do you feel hard done by? You probably didn't until now.

    I have a real problem with cafes asking for 10% extra on Sundays or public holidays. Really what the sign is saying, is that the owner/boss is too cheap to pay staff award wages and pass that directly to the consumer.

    As someone who works in the hospitality, I find it offensive. Generally, if you are open these days, you do more trade = more money. If not, close for the day and save.

Join the discussion!

Trending Stories Right Now