Consumer NZ calls for end to sneaky fees

Consumer NZ is calling on the government to crack down on what it calls 'sneaky fees'. Photo/123RF

A petition calling for a clampdown on "sneaky fees" has collected 10,000 signatures, with Consumer NZ calling for a stop to misleading pricing practices.

Consumer NZ chief executive Sue Chetwin said research from the organisation showed Kiwi shoppers could be paying $68 million a year in what she called sneaky fees added to the advertised price of goods and services.

She said these were often booking or service fees that weren't disclosed upfront and were misleading for consumers.

"Shoppers are regularly being stung by hidden fees when they buy goods and services, particularly when they're shopping online," Chetwin said.

Consumer NZ launched an online petition calling for all-inclusive pricing rules to be added to the Fair Trading Act to force retailers to disclose the full price of goods and services upfront.

Chetwin is presenting the petition to the Minister of Commerce and Consumer Affairs today.

"Retailers shouldn't be able to dupe consumers by displaying only part of the cost," Chetwin said.

The process of adding fees to the advertised price was known as "drip pricing" and Chetwin said companies often used it to make consumers less likely to shop around.

In its report, Consumer NZ highlighted examples of this from companies including online florists, sports event promoters, theatres, accommodation providers and car dealers.

The report found 68 per cent of consumers surveyed agreed that retailers should be required to disclose the total price in advertising.