Dealers must now show the total cost of a vehicle advertised - not just price plus on-road costs

The ACCC has issued clarification of its ‘Clarity in Pricing’ amendments to the Trade Practices Act. The guidance, available from www.ACCC.gov.au is specifically aimed at motor vehicle dealers.

The amendments, which take effect on May 25, require businesses which choose to advertise a part of the price of a particular product or service, to also provide a single figure that reflects the total price to be paid.

This does not mean that businesses cannot show the various components that make up that price, but does mean that if they do, they must also show, in a prominent way, the total price to be paid.Graeme Samuel

“The new law will not only mean consumers have accurate price information, but also that businesses have a more level playing field on which to compete when it comes to price representations,” says ACCC chairman, Graeme Samuel (pictured)

“Under the current law a business that does the right thing by consumers and shows the total price they can expect to pay, may be disadvantaged if a competitor elects to feature only one part of the total price, along with a disclaimer or advice that other amounts (like statutory charges) will also be imposed.

“That will not be the case after May 25.”

It will no longer be sufficient for motor vehicle advertisements to show the price of the vehicle ‘plus on-road costs’.

Source: Autofile