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ARTICLE · 07 DECEMBER 2010

The ACCC uses its new enforcement powers to take action on component pricing

Norton Rose Fulbright Australia
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The Australian Competition and Consumer Commission (ACCC) has recently been granted new enforcement powers, which make it easier for the regulator to penalise illegal advertising and pricing practices. The ACCC has exercised one of its suite of new powers by issuing infringement notices against restaurants and cafes engaging in "component pricing" in breach of the Trade Practices Act 1974 (Cth) (TPA).

AustraliaAntitrust/Competition Law
Greg Hipwell
Greg Hipwell
Jessica Rowe
Jessica Rowe
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The Australian Competition and Consumer Commission (ACCC) has recently been granted new enforcement powers, which make it easier for the regulator to penalise illegal advertising and pricing practices.

The ACCC has exercised one of its suite of new powers by issuing infringement notices against restaurants and cafes engaging in "component pricing" in breach of the Trade Practices Act 1974 (Cth) (TPA).

Component pricing is the practice of advertising only part of the price of a good or service, without also stating the total price payable (e.g. $50,000 plus on road costs). This practice was prohibited by the 2009 amendments to the TPA. The restaurants and cafes that were issued with infringement notices had failed to state a price for their menu items that was inclusive of weekend and holiday surcharges.

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