Trade Practices Amendment: Achieving Clarity In Pricing

1. Introduction

1.1 On 12 November 2008, Federal Parliament passed the Trade Practices Amendment (Clarity in Pricing) Bill 2008 ("Clarity in Pricing Amendment") which inserts an amended section 53C into the Trade Practices Act 1974 (Cth) and in doing so, introduces significant changes to the practice of component pricing.

1.2 With the proliferation of new media and forums for advertising, particularly the growth in online advertising, the practice of component pricing has become increasingly common, notably in relation to the telecommunications industry and ecommerce.

1.3 Component pricing is an important tool for businesses when vying for the attention of consumers as it enables businesses to advertise their most competitive base price and demonstrate the price difference between the goods and services they offer and those offered by competitors. With websites dedicated to allowing consumers to easily compare prices, the need to promote the most competitive