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ARTICLE · 05 MAY 2012

Can they charge me that?

Pricing regulations under the Australian consumer law.

AustraliaAntitrust/Competition Law

How often have you seen the words "10% surcharge applies on Sundays and public holidays" at the very bottom of a cafe or restaurant menu?

I think every cafe in Sydney does it. I've come to expect it. Did you know it's illegal?

Why?

The Australian Consumer Law (which applies throughout Australia) says that traders are not allowed to state a price for a good or service if that price is only part of the price for that good or service, unless the single price (being the minimum total cost) of the good is also displayed in a prominent way.

In other words, traders must advertise the full price (including any surcharge) as prominently as the pre-surcharge price.

So, if my local cafe wants to charge me a 10% public holiday surcharge because I like to enjoy a double shot flat white (normal price $4) and eggs Benedict ($15) on the Queen's big day, they have to display the prices as $4.40 and $16.50 – they can't just say "plus 10%" down the bottom.

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