<?xml version="1.0" encoding="ISO-8859-1"?> <docID>338653</docID> <postdate>2025-02-20 08:35:24</postdate> <headline>Watchdog warns on card surcharges</headline> <body><p><img class="size-full wp-image-338654" src="https://citynews.com.au/wp-content/uploads/2025/02/20190515001399429640-original-resized.jpg" alt="" width="900" height="591" /></p> <caption>Surcharges on card purchases have prompted a large number of complaints to the consumer watchdog. (Dan Peled/AAP PHOTOS)</caption> <p><span class="kicker-line">By <strong>Jack Gramenz</strong> in Sydney</span></p> <p><strong>Card surcharges inflating the cost of daily purchases will be in the consumer watchdog's sights as everything down to the price of a coffee comes under scrutiny.</strong></p> <p>Businesses can legally pass on the cost of paying by card, but providers have come under fire for potentially inflating the surcharges and adding a few cents or more to every purchase.</p> <p>"That's important when people are concerned about cost of living," Gina Cass-Gottlieb told reporters when revealing the regulator's upcoming enforcement and compliance priorities.</p> <p>The chair of the Australian Competition and Consumer Commission will put businesses on notice in her address to an economic development committee in Sydney on Thursday.</p> <p>"Our work will focus on increasing business compliance with the excessive card payment surcharging prohibition and improving pricing practices to ensure all add-on costs are appropriately disclosed," an advance copy of her speech reads.</p> <p>The consumer watchdog has been given $2.1 million in extra funding to investigate fees for card purchases as the government weighs up banning surcharges on debit card transactions.</p> <p>The focus will be on building awareness among businesses about their obligations under the law, but enforcement action is also available if the message is not received.</p> <p>Complaints from the public about excessive charging drove the commission to target the practice, Ms Cass-Gottlieb said.</p> <p>"These were repetitive instances... it looked like the coffee was five dollars, but then there's an additional 50 cents, $5.50, it matters," she said.</p> <p>But the watchdog chief acknowledged the commission was unlikely to take a small business such as a local cafe to court.</p> <p>"We need to do a range of interventions... which include infringement notices which have fines attached and we can take them without going to court," Ms Cass-Gottlieb said.</p> <p>"An infringement notice for $30,000, $50,000, that's important for a small business."</p> <p>The commission could also name and shame businesses that are not complying.</p> <p>"We have a range of possible interventions, starting with good education," Ms Cass-Gottlieb said.</p> <p>The Reserve Bank has also been reviewing card surcharging and associated costs for businesses.</p> <p>Separately, the commission will continue its recent focus on the supermarket and aviation sectors, both of which have come under scrutiny over rising prices and competition concerns.</p> <p>A report from the commission's inquiry into supermarkets will be given to the government by the end of February.</p> <p>Consumers remained concerned about misleading "was-now pricing" promoting what could be illusory discounts, Ms Cass-Gottlieb said.</p> <p>Meanwhile, a lack of competition in the aviation sector was one of the key reasons the commission recently proposed approving an alliance between Virgin Australia and Qatar Airways.</p> <p>The energy and telecommunications sector are also in the commission's sights in a bid to promote competition and crack down on misleading pricing practices.</p> </body>