Surcharges must be clearly disclosed to avoid misleading customers

As Easter approaches, the Commerce Commission is reminding businesses that if they choose to charge additional surcharges, these must be clearly disclosed and the reasons for the surcharge accurately described to avoid breaching the Fair Trading Act.

Commissioner Anna Rawlings said businesses are now routinely using surcharges to recover additional costs such as higher staff wages payable on public holidays.

"Ultimately a business can charge what it likes for its products or services and consumers will make their own decisions about whether to pay or go elsewhere. However, if a surcharge is applied, it must be clearly disclosed and the reasons for the surcharge must not mislead customers."

When applying a surcharge, there are two key things businesses must do:

• Ensure customers are made aware of the surcharge before they make a decision to purchase, so they can decide whether to pay it or go elsewhere

• Accurately describe the reason for the surcharge, for example businesses must not claim their surcharge on Easter Sunday is because it is a public holiday, as the only public holidays over the Easter weekend are Good Friday and Easter Monday.

"We encourage all businesses that are trading this Easter weekend to make sure they are complying with the Fair Trading Act and not misleading customers. We also encourage consumers who feel that they have been misled by a surcharge to contact us on 0800 943 600 or via our website," Ms Rawlings said.

ENDS

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