Businesses to display all charges up front - News alert

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Date
15 October 2019
Category
News alerts
Changes to the Australian Consumer Law will clarify prices for people shopping online.
 
From 26 October 2019, businesses must include all charges in the advertised price of goods and services payable by a consumer. This includes charges for pre-selected options.
 
Currently, a business can advertise a low price; during the buying process, they may add extra charges or options. These options are often pre-selected.
 
The customer must deselect them if they do not want them.
 
A customer could also pay more than they expected if they did not get a chance to opt out of the extras.
 
Under the new laws, businesses must add these extras to the price of the good or service up front.
 
Consumers may then deselect them as they go through the buying process. 

Example:

A flight on an airline website is advertised at $100.

As the consumer is making the purchase, there are two pre-selected options – travel insurance for $20 and a seat with extra leg room for $10.

Under the new laws, the flight must be advertised at $130 up front.

 

 

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