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WARNING - Advertising Laws

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The Australian Competition and Consumer Commission (ACCC) has announced "clarity in pricing" changes to the Trade Practices Act which came into effect on 25th May 2009 and which may affect businesses offering products and services that come with extra fees and surcharges.

The amendments require that businesses "clearly display the total cost of a product or service after all other charges and fees have been applied".

Examples include:-

  • Restaurants must now clearly print the total extra charges for public holidays and weekends;
  • Businesses requiring a number of payments over a period of time for a product, must display the final cost;
  • Car rental groups advertising a rental price, but also requiring a charge per km driven, must clearly display the full charges.

The penalties for failing to comply with the new laws are quite harsh with penalties up to $1.1M for corporations or $220,000 for individuals. If you have concerns as to how the new law may affect your pricing strategy, please contact your lawyer.

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