Key Point
- Businesses should review their existing compliance
procedures for advertising sign-off now that the Clarity in Pricing
Bill has been passed.
On 12 November 2008, the clarity in pricing amendments to the
TPA, which were proposed in September last year were passed by the
Parliament.
The new section 53C will commence no later than 25 May 2009. It
will apply to conduct that businesses engage in on or after that
date.
What do the new rules require?
Once implemented, businesses will need to specify the single
figure price of goods or services when making a representation
about price to consumers. While business can continue to use
component pricing, it may only do so if it also prominently states
the single figure or total price for the goods or services (to the
extent that that price is quantifiable at the time the
representation is made). There will be an exception for
representations made exclusively between corporations.
