What is an all-inclusive price in motor vehicle advertising?
An all-inclusive price is the total amount that the consumer has to pay to the motor vehicle dealer to obtain the motor vehicle advertised. It includes all mandatory payments such as dealer delivery charges and administration fees. Additional charges the consumer can pay directly to a third party, such as registration fee, stamp duty and third party compulsory insurance, need not be included in the price of the motor vehicle. If the motor vehicle dealer or seller makes a representation to the effect of ‘drive away, no more to pay', all additional charges should be included in the price.
Relevant sections of the Trade Practices Act
The three sections of the Trade Practices Act relevant to motor vehicle price representations are s. 52, s. 53(e) and s. 53C.
Section 52
This is the general provision prohibiting misleading or deceptive conduct.
Section 53
This prohibits the making of false or misleading representations. In particular, a representation that the price is the whole of the consideration, when in fact it constitutes only part of the consideration for the goods or services, is likely to breach s. 53(e). Therefore, businesses making representations as to the price of goods or services must disclose the existence of additional mandatory charges.
In contrast, s. 53C requires that when a representation is made that would constitute part of the consideration for the supply of goods or services, then the corporation must also specify the ‘cash price’.
The ACCC actively promotes compliance with these price related provisions of the Act. It has provided guidance to the community and businesses on all-inclusive pricing, including the airline, travel and motor vehicle industries.
Disclaimer and fine print
In using disclaimers and/or fine print, motor vehicle advertisers should focus on the overall impression given to the consumer, especially when using techniques such as asterisks and associated fine print. Disclaimers should be specific, clear and highly visible. Information in the fine print should not contradict the main message.
