17 July 2013

Cutting red tape for restaurants and cafés


Joint Media Release with
Bernie Ripoll
Parliamentary Secretary for Small Business

The Government has cut red tape for restaurants and cafes, who will no longer have to produce separate menus for weekends and public holidays when they might apply a surcharge.

The targeted component pricing exemption for restaurants and cafes came into force this week. Under the component pricing laws, the final price of a product must be displayed, including all fees and charges. This meant that restaurants and cafes applying surcharges on weekends and public holidays had to create separate menus just for those days. This exemption will allow restaurants and cafes that apply a surcharge on weekends and public holidays to do so without having to provide separate menus.

"The Government has taken action to cut red tape for restaurants and cafés, reducing costs and complexity but maintaining transparency for consumers," said Minister for Competition Policy and Consumer Affairs, David Bradbury.

Restaurants and cafes will no longer have to:

  • print and distribute a different menu for weekends and public holidays; or
  • show two or more lists of prices on the same menu; or
  • undertake changes to the blackboard menu.

"The exemption positively impacts on small business," said Parliamentary Secretary for Small Business, Bernie Ripoll. "Restaurants and cafes are a valuable part of the Australian economy, so it is important that these businesses are not subject to any unnecessary red tape."

The Australian Consumer Law gives consumers certainty about their rights when dealing with businesses. These changes still ensure that consumers have protection and clarity when ordering from restaurant and cafe menus as businesses still must adhere to the general obligations of the law such as misleading and deceptive conduct when displaying and marketing prices and charges.