We get asked a lot of questions about the rights of consumers when it comes to the pricing of goods and services. Show For example, what happens when a retailer shows different prices for the same goods? What can people do about hidden fees? On this page:
Multiple pricesIf a business displays more than one price for the same item, this is called multiple pricing. The business must sell the item for the lowest "displayed price" or withdraw the item for sale until the price discrepancy is fixed. The displayed price is a price shown:
However, a displayed price does not include:
If a business sends out a catalogue which shows the wrong price, this can be fixed by publishing a retraction in a publication which has a similar circulation to the original catalogue. For example, if a catalogue which shows the wrong price is inserted into a major daily newspaper, the retraction should appear as a correction in that newspaper, or in another catalogue inserted into that newspaper within a short time after the original catalogue appeared. Supermarket code of conductSome (but not all) supermarkets are signatories to the code of practice for computerised checkout systems in supermarkets. The supermarkets which participate in the code display signs telling customers that they are participants. The code says that when an item is scanned at a higher price than it says on the shelf or as advertised, a customer is entitled to receive the first item free and all later items at the lower price. There are some exceptions:
Despite what some supermarkets might tell you, it is not necessary for the customer to have paid for the goods or to have left the store to be entitled to receive the first item free of charge. Customers can complain to a supervisor or the store manager if staff refuse to comply with the code. If the store does not comply with the code, a customer can take their complaint to the Australian National Retailers Association (ANRA) on 02 8249 4520. Bait advertisingSometimes, catalogues will say that a price is only available in a certain region, or a certain store, or for a certain period of time. That's quite OK. Catalogues will sometimes say that not all goods are available in all stores. That's OK too. But it is not reasonable to advertise an item at a ridiculously low price and only have one or two available (unless this is made clear in the advertisement). This is called bait advertising because it uses a low price to get customers into the store. Businesses should have reasonable stocks of items that are advertised. If they are only available for a limited time, this should be made clear. The definition of what is a "reasonable period" or "reasonable quantities" will vary from one situation to another, depending on the type of the goods or service. So if it's a discounted dishwasher you might expect only a few to be available, but if it's discounted perfume, you would expect there to be more than a couple of bottles available - unless this is specifically mentioned in the advertisement. Sometimes businesses might offer a "raincheck" on the advertised price to keep goodwill with their customers. Or they might offer a similar product at the same price. This is OK as long as they are not using the sale price as bait to upsell customers to something more expensive. Single pricingWhen businesses are advertising or promoting their goods or services, they must display a single price which is the minimum total cost of buying the goods, including GST and any other extra fees and charges. No hidden fees. The single price should be clear and unambiguous and should include all the parts of the price that have to be paid to get the goods. But it doesn't have to include delivery charges or optional extras. If there is a minimum delivery charge, this should also be displayed in the advertisement. The single price should be at least as prominent as any other price that is advertised, so that you can work out which price is the total price from looking at the ad. Restaurants and cafes that add on a surcharge for Sundays and/or public holidays do not need to have a whole separate menu with the different prices. It is sufficient if the menu includes the words "A surcharge of [x percent] applies on [the relevant days]" and these words must be at least as prominent as the rest of the prices on the menu. Misleading pricesBusinesses must be careful not to mislead consumers when advertising prices for goods or services. Here are some common examples of marketing gone wrong:
Drip pricingDrip pricing is a relatively new phenomenon which involves the incremental disclosure of fees and charges over the course of an online booking process. It is misleading to consumers and it can be detrimental to competition. Consumers see a price advertised as they commence the booking process. They may have been attracted to the website by the advertised price, or they may see the price and use it to make comparisons against other companies. But once they start going through the process, fees and charges are added along the way, perhaps not in big chunks, but in smaller "drips" until the price at the end is quite a lot more than the price at the beginning. But by the end of the process, even though they are annoyed at the extra charges, the consumer has invested time and effort and may be less inclined to start the process over again. So the consumer is misled and competitors who disclose all their prices upfront are disadvantaged. The ACCC has drip pricing in its sights in 2014 and has promised action. Airlines, hotels and ticketed events are common culprits. Receipts and itemised billsBusinesses must always provide a receipt or proof of purchase for anything over $75. If one is not provided, consumers have the right to ask for one. Consumers can also request a receipt for anything under $75 and businesses must provide the receipt within seven days of being asked. A receipt or a proof of purchase must include:
Examples of a receipt or proof of purchase are:
Consumers can ask suppliers for an itemised bill up to 30 days after receiving a service or 30 days after receiving a bill for the service. This must show:
Suppliers have to provide the itemised bill within seven days of the request and it must be provided free of charge and be legible and understandable. What can I do about misleading pricing?If you have a price-related complaint against a business you can do the following:
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