Surcharge sinners: investigation reveals some restaurants are breaking consumer protection laws

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Radio 2SER and Reportage Online spent three weeks between May 17 and June 6 investigating restaurants and cafes in Sydney, Canberra and Perth. It found over 60 establishments were breaking the law by charging illegally advertised surcharges. Passed over a year ago section 53C of the Trade Practices Act 1974 says businesses can no longer just asterisk the surcharge at the bottom of a menu. Instead businesses who want a surcharge must incorporate it into their prices. In practice, restaurants and cafes need two menus; one with normal prices and one with the increased ones. But who’s paying attention? And is your local diner a surcharge sinner?

 

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Tuesday, June 8 2010
Produced By Patrick Wright
Featured in storyJohn Hart – CEO, Restaurant and Catering AustraliaCaroline Coops – partner, Mallesons Stephen Jacques law firmMichael Schaper – Deputy Chairman, Australian Competition and Consumer CommissionChris Zinn – consumer advocacy group Choice
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