Update: Following legislative amendments in 2013, restaurants, cafes and bistros that charge a surcharge on certain days do not need to provide a separate menu or price list or have a separate price column with the surcharge factored in. However, the menu must include the words “a surcharge of [percentage] applies on [the specified day or days]” and these words must be displayed at least as prominently as the most prominent price on the menu. If the menu does not have prices listed, these words must be displayed in a way that is conspicuous and visible to a reader. These measures apply to pricing for both food and beverages. See: Displaying prices
The Australian Competition and Consumer Commission has instituted proceedings against four cafés and restaurants for alleged breaches of the component pricing law by failing to include Sunday and/or public holiday surcharges in their menu prices.
The traders are:
- A.I. Constructions (ACT) Pty Ltd trading as Babar Café and Bar (Woden)
- Helmos Enterprises (NSW) Pty Ltd trading as Georges Bar and Grill (Sydney)
- Le Sands Restaurant and Le Sands Café Pty Ltd trading as Signature Brasserie (Brighton Le Sands), and
- Gourmet Goody's Family Restaurant Pty Ltd trading as Steersons Steakhouse (Sydney).
The ACCC alleges that the traders breached section 53C of the Trade Practices Act 1974 which requires businesses that show a part of the price payable for a product or service to also provide the single total price of that product or service.
The ACCC is seeking declarations, injunctions, civil penalties and costs.
The Scheduling Conferences are currently listed as follows:
- A.I. Constructions (Babar): 12 October 2010 at 9:15 a.m., in the Canberra Registry
- Le Sands (Signature Brasserie): 13 October at 9:30 a.m., in the Sydney Registry
- Helmos (Georges): 25 October 2010 at 9:30 a.m. in the Sydney Registry, and
- Gourmet Goody's (Steersons Steakhouse): 2 November 2010 at 9:30 a.m., in the Sydney Registry.
On 28 June 2010, the ACCC issued Infringement Notices to eight traders for having menus that it had reason to believe did not comply with component pricing laws on 20 June 2010. Four traders paid the Infringement Notice and no further action was taken. The court actions are against those who failed to pay the Notice.
The ACCC had undertaken a compliance survey that identified a number of cafés and restaurants' menus the ACCC considered did not comply with the Act. The traders were contacted and the ACCC took no further action against those who responded swiftly. Infringement Notices were issued to those cafés which did not correct their menus despite the ACCC's concerns.
The traders which paid Infringement Notice penalties were Suburban by Belluci's in Dickson, Verve Café Bar in Manuka, Turkish Pide House in Woden and Australian Pizza Kitchen in Civic, all in Canberra. The payment of an Infringement Notice is not an admission of a breach of the Act.
The ACCC has produced specific guidance for restaurants, hotels and cafes to explain their obligations under section 53C and has been working with relevant industry bodies to ensure that information reaches their members. As part of its continuing education campaign, the ACCC recently wrote to a number of state and national industry bodies to remind them, and their members, of the requirements of section 53C ahead of the coming September and October public holidays.