How often have you seen the words "10% surcharge applies on Sundays and public holidays" at the very bottom of a cafe or restaurant menu?
I think every cafe in Sydney does it. I've come to expect it. Did you know it's illegal?
Why?
The Australian Consumer Law (which applies throughout Australia) says that traders are not allowed to state a price for a good or service if that price is only part of the price for that good or service, unless the single price (being the minimum total cost) of the good is also displayed in a prominent way.
In other words, traders must advertise the full price (including any surcharge) as prominently as the pre-surcharge price.
So, if my local cafe wants to charge me a 10% public holiday surcharge because I like to enjoy a double shot flat white (normal price $4) and eggs Benedict ($15) on the Queen's big day, they have to display the prices as $4.40 and $16.50 – they can't just say "plus 10%" down the bottom.
Awkward, but it really means they need to either display both prices or have two menus. No wonder none of them comply
Exceptions
Traders are not required to include in a single price things such as optional extras. This is because extras do not form part of the minimum total cost of the item.
What you need to know
- These laws only apply to businesses supplying goods and services to consumers.
- Surcharges are legal, but must be included in the single total price.
- The single total price must include all charges payable by the consumer to purchase the good or service (including booking fees, administration fees and all taxes and charges imposed on the supplier by law).
And yes, you can refuse to pay the surcharge at your local if they haven't complied.
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