Is it legal for businesses to slap on a holiday surcharge?
It’s almost expected that when you walk into a cafe or shop on a public holiday or long weekend there is a sign indicating a certain surcharge on all bills.
Have you ever wondered if it's legal? Can shop owners do this on normal weekends?
With the cost of living increasing and just recently the minimum wage rising – which will no doubt be passed on immediately to consumers – the last thing anyone wants to be hit with is an unnecessary surcharge.
But the surcharge on bills is in fact legal as long – as the customer is aware beforehand.
So! That little sign you see at the till of the expected surcharge is your due notice that the extra levy will be in effect.
Being open on public holidays and weekends costs business a lot more due to the penalties that apply and it's up to the business on how they want to tackle that extra cost.
The surcharge could be placed on the overall bill, or on all items on the menu. Otherwise, the business can just decide to cop the surcharge themselves and not put it on the customer.
Regardless, it is always up to the business to decide how much they charge and whether or not prices change, as long as the customer is made aware.
The Australian Competition and Consumer Commission (ACCC) has also made it illegal for businesses to hide those surcharges.
"Restaurants, cafes and bistros that charge a surcharge on certain days do not need to provide you a separate menu or price list or have a separate price column with the surcharge included," the watchdog says.
"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."
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