Consumer advocates are urging diners to be aware of potential misleading surcharges over the Easter period, clarifying that only Good Friday and Easter Monday are legally recognized public holidays. Businesses applying surcharges on other days should be transparent about the reason for the additional cost, according to Consumer NZ.
Easter Surcharges and Consumer Rights
Many hospitality businesses add surcharges during public holidays to offset increased wage expenses. However, Consumer NZ points out that a surcharge on Easter Sunday is not justified as it is not a statutory holiday.
Chief executive Jon Duffy stated that businesses are permitted to apply surcharges, but must not mislead customers about the reason. “They can apply a surcharge if they want to, and customers – if they decide they don’t like that surcharge – can decide that they will take their custom elsewhere,” Duffy said. “The rules, as they exist under the Fair Trading Act, simply say that businesses can’t mislead you about the reason for that surcharge.”
Duffy suggested businesses could consider spreading holiday wage costs throughout the year instead of implementing surcharges. He also noted the inconsistency of surcharging practices, including varying fees for payment methods like EFTPOS.
Clear disclosure of surcharges is crucial, and businesses should avoid hiding them. Consumers who believe they have been misled can file complaints with the Commerce Commission or report the issue to Consumer NZ.
Government Legislation on Surcharges
The government previously introduced legislation to ban in-store card surcharges, but the bill is currently stalled in Parliament. ACT has expressed opposition to a blanket ban on paywave surcharges, arguing it could lead to price increases. Commerce and Consumer Affairs Minister Scott Simpson maintains the legislation is still under consideration and further work is being done on the policy.
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