Single price law proposed to Parliament

Last week, the Trade Practices Amendment (Clarity in Pricing) Bill 2008 was introduced to Federal Parliament.

If passed into law, the Bill will amend the Trade Practices Act 1974 to mandate advertising of a single buy price for certain goods and services.

Outline of the proposed new law

As the Bill is currently drafted, the key rules would be:

• Rules only apply when advertising goods or services of a kind ordinarily acquired for personal, domestic or household use or consumption.
• Rules do not apply if advertising exclusively to companies i.e. not people.  Advertiser must prove this is the case.
• Rules do not apply if advertisement doesn’t state any pricing.

Otherwise:

• Advertisement must state the single figure all-in buy price.
• Single price must be prominent.
• Single price must be at least as prominent as any other pricing mentioned – except for any monthly / periodic service charge under a term contract (as long as any goods advertised in same advertisement are for use with the service).
• No obligation to bundle delivery charge in single price.
• If minimum delivery charge is not bundled in single price but is known, it must be separately stated.
• Single price may exclude optional extras.
• Single price must include GST if applicable.

Penalties for breach

It’s proposed that breach of the new law will trigger the offences provisions, with maximum fines per offence of $1.1 million for a corporation and $220,000 for an individual.