Advertising / Consumer Protection

Component pricing laws having an impact

The new clarify of pricing requirements for business commenced on 25 May (see section 53C of the Trade Practices Act).  These requirements deal with how business may use ‘component pricing’ (specifying the price for each part of a good or service separately) when advertising their products and their impact is clear; today’s ‘Cars Guide’ in my local paper now list the price of every car as ‘drive away’. This is in stark contrast to the same guide a week ago. Finally, companies are prevented from ‘hiding’ prices with ridiculous little asterisks or vague references to registration or delivery costs (although I do notice some mobile phone websites do not seem to comply yet … I’ll be keeping an eye on them!).

See my blog of 5 May for details about the new laws.  Briefly, while the new laws permit ‘component prices’, they require that the full price will be prominently displayed (at least as prominently as any component price listed).

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