Price pain for shoppers flows from a lack of transparency

Knowing the full price of something has become murkier for consumers. Here’s how to keep on your toes.

Knowing the full price of something has become murkier for consumers as new technologies mean people should be extra-alert about avoiding rip-offs.

From funerals and foreign exchange transactions to home loans and hearing aids, authorities and consumer groups have been working to keep prices transparent amid a surge in online shopping and increasingly complex financial products.

Check the fine print more than ever and ask plenty of questions when buying goods or services, they say.

Problems around pricing transparency can include:

• Hidden costs buried in fine print.

• Costs in terms and conditions that are not disclosed when buying goods or services.

• Credit card surcharges and other fees.

• Complex pricing structures, such as when a discount is difficult to understand.

• Comparison websites with unclear or undisclosed commissions.

CHECK ADVERTISING

An Australian Competition and Consumer Commission spokeswoman says extra fees and charges must always be adequately disclosed.

“Consumers should always check the fine print of any advertising, and review terms and conditions before entering into any contracts to understand exactly what they are purchasing and what the costs will be,” she says.

Specsavers chief audiology officer Nick Taylor.

Queensland Consumers Association spokesman Ian Jarratt.

“Businesses must not mislead consumers and must be clear, accurate and transparent about the prices for goods and services.”

In recent years the ACCC has examined foreign currency conversion services, petrol pricing, mortgages and hearing aids, while consumer group Choice investigated the funeral industry.

“Unclear pricing, misinformation, fees for no service and a highly concentrated market where the true ownership of funeral providers is obfuscated are just some of the poor practices we uncovered,” says Choice campaigns and policy advisor Amy Pereira.

PREVENT PRODUCT CONFUSION

Queensland Consumers Association spokesman Ian Jarratt says hotels, airfares and credit card surcharges are other areas consumers should keep a close eye on.

“It’s unfortunate in this day and age where we have complex products and complex payment systems the consumer has to be on their guard,” he says.

“Be aware of the possibility that there might be extra charges.

Unit pricing in supermarkets provides price transparency for grocery shoppers.

“Be careful that the product is exactly what you think it is and you as a consumer are not confused by model numbers and things like that.”

Jarrett says the rules around product sold online are not as rigorous as traditional purchases.

“For example, when buying food products online there’s no legal requirements for them to disclose use by dates, ingredients and nutritional information,” he says. “Legislation hasn’t caught up.”

Supermarkets ensure price transparency on their shelves through unit prices, which tell you the cost of a product per unit of measurement such as 100g or litre, so you can work out if a discount really is a discount.

LOUD AND CLEAR

Specsavers is running a campaign calling for more price transparency around hearing aids.

Its chief audiology officer, Nick Taylor, says “surprise costs” in the sector can involve after-care support, styles, colours and returns.

“Because many audiology service providers aren’t transparent about their pricing at the start of the hearing journey, customers can overpay or feel pressured into buying higher levels of hearing aid technology because they don’t get to shop around,” he says.

“We encourage them to shop around and do their research on any terms and conditions related to returning hearing aids.”

KNOW THE RULES AROUND PRICING

• Australian Consumer Law requires businesses to display a prominent single price.

• That price must include any additional fees or charges that cannot be avoided.

• The price of optional extras does not need to be included in the prominent single price.

• However, businesses must still provide clear and accurate information about the cost of optional extras.

Source: ACCC