We've all seen it in car ads, $19,990 plus on road costs. Then when you go into the dealership to buy the car, it's more like $25,000!! Thanks to amendments to the Trade Practices Act 1974 there will be clarity in advertised prices.

 

The amendments, which take effect on 25 May, require if businesses choose to advertise a part of the price of a particular product or service, they must 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 makeup that price, but does mean that if they do, they must also show, in a prominent way, the total price to be paid.

The Australian Competition and Consumer Commission (ACCC) has developed guidance material specifically for the motor vehicle and tourism sectors, which frequently use component pricing in advertising. It will no longer be sufficient for example, for a motor vehicle advertisement to show the price of the vehicle 'plus on-road costs'. And they're pretty serious about it. They have released a 37 page manual to help the industry understanding exactly what they need to do to ensure that consumers are not mislead in any way.

While clarity in the price of new cars has been around for over 14 years-yes it was Hyundai that coined the phrase "driveaway no more to pay", the fact that it is now a legal requirement is great news for new car buyers.

So, from 25 May, the price you'll see in advertising will be the total price that you pay!

 

 

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