Menu/Component Pricing Legislation
(Competition and Consumer Act 2010)
Since 1 July 2009, the Australian Consumer Law (“ACL”) of the Competition and Consumer Act 2010 (formally the Trade Practices Act 1974) has required businesses to identify the single total price of a product or service.
In practice, the ACL prohibits the common industry practice of including a note on a menu specifying a percentage surcharge for particular periods such as Sundays or public holidays. Surcharges are only permitted if menus are provided containing prices for each item on the menu inclusive of the surcharge.
The component pricing legislation does not include optional fees and charges.
The Australian Competition and Consumer Commission (“ACCC”) has published “Component pricing – restaurants, cafes and hotels, Business Snapshot” to assist venues to comply with their obligations under the ACL.
Click here to access the ACCC information sheet.
Click here for the ACCC Component Pricing – Frequently Asked Questions.