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Overview — Single price display
Kathryn Edghill, Partner, Bird & Bird
Introduction
Section 48 of the Australian Consumer Law (ACL) (which is Sch 2 to the Competition and Consumer Act 2010 (Cth)) regulates the display of prices in connection with the supply or possible supply, or the promotion of the supply, of goods or services ordinarily acquired for personal, domestic or household use or consumption.
The section sets out the obligation which applies to persons who display the prices of any of the components which make up the supply of consumer goods or services to also display the single or total price for those goods or services.
The section is particularly relevant to persons who supply or promote the supply of consumer goods or services which are paid for in instalments or on a periodic basis. Common examples are mobile phone or broadband contracts which include monthly payments for specified periods and may include other fees such as establishment costs.
The rationale behind the obligation to display a single price is so that consumers can know the full extent of the financial obligation which they will be required to meet.
Failure to comply with the obligation to display a single price is a strict liability offence under s 166 of the ACL, for which penalties apply of up to $1.1 million for corporations and $220,000 for individuals.
How, when and what must be displayed?
The section requires the display of the single price which the consumer will pay for the goods or services, whenever a person displays or states a part of the price which is payable for those goods or services.
The single price must be displayed as prominently as any of the component prices which are displayed.
The single price must include all charges of any description which will be paid by the consumer in connection with the supply of the goods or services, including charges payable to third parties, where such charges are known and able to be quantified. This includes GST.
See How, when and what must be displayed?
Exceptions and qualifications
There are a number of exceptions and qualifications to the obligation to display a prominent single price. They are:
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there is no obligation to display the single price where the only person to whom the component prices is displayed is a corporation;
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delivery charges do not need to be included in the single price, but if the minimum amount of those charges is known they must be specified when stating or displaying the component prices;
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if a charge is not quantifiable at the time pricing is displayed it does not need to be included in the single price; and
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where a charge is payable at the option of the consumer it does not need to be included in the single price.
See Exceptions and qualifications.
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