Can a website charge hidden checkout fees in Australia?
No, websites in Australia cannot legally charge hidden checkout fees. Under the Australian Consumer Law (ACL), all mandatory charges must be clearly disclosed upfront. Practices like "drip pricing," where fees are added later, are illegal if misleading.
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How it works in practice
What are Hidden Checkout Fees?
Hidden checkout fees, often referred to as "drip pricing," occur when additional charges are progressively added during the online purchasing process, only becoming apparent at the final payment stage. This practice is prohibited in Australia under the Australian Consumer Law (ACL).
Australian Consumer Law (ACL) Protections
Businesses must clearly display the total price of a product or service upfront, including all mandatory fees and charges. The ACL prohibits businesses from engaging in misleading or deceptive conduct. This means the initial price advertised must be the total price a consumer is required to pay, or any additional mandatory fees must be clearly stated from the outset. While optional extras can be offered, any fee that is unavoidable for completing the purchase must be included in the displayed price.
Why it Matters
Transparent pricing ensures consumers can make informed purchasing decisions without being ambushed by unexpected costs. The ACCC actively monitors and takes action against businesses that engage in drip pricing or other misleading pricing practices, reinforcing consumer trust in online transactions.
Important exceptions
Genuine optional extras, which a consumer can choose to add or remove from their purchase, are permissible. Legitimate surcharges, such as those for specific payment methods (e.g., credit card processing fees), are allowed if they accurately reflect the cost to the business. However, these must be clearly disclosed and visible before the consumer commits to the purchase, and not obscured or revealed only at the final step if they are unavoidable.
What you should do now
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Document the hidden fee by taking screenshots of the checkout process at each stage.
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Contact the business directly to dispute the charge, citing the Australian Consumer Law, and request a refund.
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If unresolved, lodge a formal complaint with your state or territory fair trading agency.
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Report the business to the Australian Competition and Consumer Commission (ACCC) for investigation.
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Consider initiating a chargeback through your bank or payment provider if the transaction was completed with the hidden fee.
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