International Law

Clarity in Pricing Bill introduced

The Commonwealth Government has introduced into Parliament the Trade Practices Amendment (Clarity in Pricing) Bill 2008.

The Bill relates to the use of component pricing in representations by businesses to consumers. Component pricing is the practice of advertising prices as the sum of multiple component parts, for example as $X plus $Y. Component pricing can create an impression that a product is being offered for sale at a lower price than it actually is.

If passed, this Bill will amend the Trade Practices Act to prohibit corporations from using a component price when making a representation as to the price of a good or service without also prominently specifying the single figure price a consumer must pay to obtain the product or service, to the extent that a single figure price is quantifiable at the time of making a representation.

This Bill does not prohibit component pricing, provided that a single figure price is also displayed.

The limitations on the use of component pricing imposed by the Bill would not apply to representations made exclusively by businesses to other businesses or governments.

Full post as published by Australian Regulatory Compliance Review on September 26, 2008 (boomark / email).