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PRICING POLICY

IN: CLARITY PRICING BILL, OUT: COMPONENT PRICING

ALL advertising by travel agents and airlines in Australia will have to include the full price, including all taxes and charges, under new laws introduced into Parliament yesterday.

The ‘Clarity in Pricing Bill’ requires that “where a business makes a price representation to a consumer, and that amount is less than what the consumer will actually have to pay to acquire the goods or services, the business must also prominently state a total price as a single figure,” said consumer affairs minister Chris Bowen.

He criticised so-called “fine print disclaimers which reveal additional mandatory taxes, fees or other charges.”

Although this hasn’t been a legal requirement, Qantas and Virgin Blue now disclose the full price of fares, with other carriers incl Singapore Airlines also making it a standard practice.

Bowen said the govt understands that in some cases the final price may depend on factors beyond the control of a business in which case only the minimum total quantifiable price must be stated.