Consumer Watch with Natasha Pirrottina: Avoid being caught off guard, here’s what to know about surcharges

Have you found yourself paying $17.45 for two flat whites on a public holiday? No, the price of your morning coffee hasn’t gone up, you were most likely hit with a surcharge. Hospitality businesses often charge a surcharge on public holidays to cover higher wage costs. Staff must be paid penalty rates on weekends and public holidays, so your favourite cafe, restaurant or pub may pass on these extra costs to you. Paying a surcharge should never come as a surprise. You should be made aware of any weekend or public holiday surcharges before you decide to order or buy from a restaurant, pub or cafe. The menu or price board must include the wording “a surcharge of (percentage) applies on (the specified day or days)“. This statement must be easy to see and noticeable, so you know the price displayed won’t be the final price charged on those specified days. Alternatively, if the menu does not list prices, the information about the surcharge must be displayed in some other obvious way so you’re aware before you order. This could be a big sign at the door or at the cash register. So, if your local pub fails to let you know your pint of beer is going to cost a little more on a public holiday, this may be a breach of the Australian Consumer Law. Another type of common surcharge is credit card surcharges. The good news is there are rules about this too. Card surcharges are permitted under the Australian Consumer Law, however the fee must only reflect what it actually costs the business to process the payment, such as bank fees or terminal costs. If a business charges a payment surcharge, it must be able to prove the costs it is based on. If there is no other way for you to pay without incurring a surcharge, then the business must include the fee in the total cost. For example, your local cafe charges $5 for a coffee, but they do not accept cash, and all card payments are surcharged. Then it is not possible for you to buy that coffee at $5. If the surcharge is 1 per cent then the price displayed must clearly be $5.05 so you can easily tell how much your coffee really costs. In the same way a hospitality business must let you know about surcharges, they must also let you know if they don’t accept cash. Remember, purchasing goods or services is entering into an agreement with a seller. You do not have to agree to make the purchase if the payment methods or final price aren’t acceptable to you. If you feel you have been misled by a business about surcharges, have a chat with them first about it and see if they can help rectify it. Otherwise, report it to Consumer Protection — 1300 30 40 54 or consumer@demirs.wa.gov.au Natasha Pirrottina is senior regional officer for Consumer Protection in the Mid West