COMMERCIAL television networks have agreed to alter their price proposal schedules and confirmation sheets to show GST-inclusive prices following pressure from the Australian Competition & Consumer Commission (ACCC).
The ACCC had received complaints that commercial networks were displaying and quoting the prices for TV advertising time on a GST-exclusive basis.
ACCC chairman Professor Allan Fels said the commission had raised its concerns with the Federation of Australian Commercial Television Stations (FACTS) and secured a guarantee that a “confirmation step” would be introduced for direct customers, disclosing the GST-inclusive price of advertising services.
“This has been implemented to reduce the likelihood that customers may be misled about the full price they have to pay for television advertising,” Fels said.
The disclosure for direct customers—those who do not use an agency to book ad space—will be implemented from this month, and GST-inclusive pricing will be implemented for all customers from January 1, 2002.
“The risk that businesses may be misled by GST-exclusive pricing is very real as is demonstrated by the complaints the ACCC continues to receive,” Fels said.
“Accordingly, businesses should take appropriate steps to ensure that their customers know exactly how much they are paying for goods and services before they enter into a legally binding contract.”
