While changes to the Trade Practices Act have troubled some city retailers, they may be a positive for country businesses previously disadvantaged by competitors hiding extra costs.
Amendments to the Trade Practices Act that came into force last Monday now require all component pricing like surcharges, fees, postage and handling and the goods and services tax (GST) to be included in the advertised price as a single all-inclusive figure.
Glen Severn Holden Manager Max McConnell said the new laws require car dealers to advertise the full drive away price on new cars including if the car had additional extras like metallic paint.
Mr McConnell said while the dealership already advertised the drive-away price for new cars, many city dealers would advertise a price and not disclose all the additional costs to consumers resulting in lost business to the city.
“I welcome the changes,” he said. “ City dealers used to confuse country people by advertising a price in the paper, then people see the price but not the small print. People would come in to us and say they saw the same car cheaper in Sydney or Brisbane.”
Unlike their city counterparts, local café and restaurant owners will not be greatly affected by the amendments in hospitality. The Examiner spoke to Efishensea, the Tasting Room, Shen Yen and Crofters Cottage who all said they do not include a surcharge on their weekend menus and rarely use it on public holidays.
“Because our business is 90 per cent local people we don’t like to charge a price through the week and a different price on weekends,” Deanne Ross of Crofters Cottage said.
The new law stipulates the menu must disclose the full price and not simply state at the bottom of the menu “plus a 10 per cent weekend/public holiday surcharge”.
Under the changes cafés and restaurants must supply two menus one for weekdays and one for weekends and public holidays to show the total price for all meals.
Customers cannot refuse to pay the additional cost if a business does not comply with the changes. However they can report the breach to the Australian Competition and Consumer Commission (ACCC) by contacting 1300 302 502 or visiting the website www.accc.gov.au.