Section 53C of the Trade Practices Act has been amended
to provide that from 25 May 2009 if you chose to refer to a
particular component of a price for goods or services in an
advertisement, you must also provide a single total price which is
as prominent in that advertisement as the component pricing. The
total price must be clear and eye catching, it must stand out and
be easily seen by the customer.
Single Price is the minimum total cost that can be calculated at
the time of making a price representation.
It is calculated by adding each of the price components you are
able to quantify at that time.
It must include any charge of any description plus any tax,
duty, or levy payable by a consumer to purchase the goods or
It does not need to include optional extras such as:
any sending charges
components not quantifiable at the time
any amounts that are payable to a third party which are not
passed on to the consumer, such as commissions.
Typical inclusions will be:
the vehicle purchase price
dealer delivery fee.
For used vehicles, the stamp duty payable on the transfer of the
vehicle to the consumer is something which is payable by the
consumer directly to a third party, and therefore does not need to
be included in the advertised price.
There are limited circumstances where you need not prominently
display the single price such as:
where advertising is made exclusively to a company or other
body corporate. ( eg specific deals for fleet)
services supplied under a contract that also provides for
goods directly related to above services
You must therefore ensure that when advertising vehicles or
services after 25 May 2009:
If you are not able to calculate the value of a component you
need to have a reasonable explanation as to why (eg where a fixed
service price is offered and parts are to be extra you must include
parts you know will have to be replaced but you can exclude
additional parts or services which may be required upon inspection
of the vehicle)
you clearly state any components which are excluded or may
a single price should be given for each vehicle advertised
the single price for a new vehicle should be for the featured
model without any optional extras.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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