The ACCC has sent legal notices known as substantiation notices to some distributors supplying goods or services to remote and regional Australia.

These notices ask them to substantiate the representations they have made about their reasons for imposing “sizeable” fuel surcharges or levies.

According to the ACCC, these types of surcharges are being widely justified on the basis that the suppliers’ costs have increased due to the impact of rising oil and fuel prices in the supply chain.

The businesses have three weeks to respond to the ACCC and to substantiate the representations they have made about fuel surcharges.

“We have seen an increase in complaints from consumers and small businesses about the introduction or increase of fuel surcharges, including surcharges of more than 70% imposed on small businesses servicing remote communities,” says ACCC Chair Gina Cass-Gottlieb.

The ACCC recognises that businesses have experienced cost increases due to higher fuel prices. However, the consumer watchdog says it’s investigating whether the size of some of the surcharges, presented as due to rising fuel costs, exceed those increases.

Fuel surcharges have also been reported in the cities including as levies to consumers at cafes and restaurants, as well as travel companies.

“Businesses mustn’t mislead consumers about their prices,” says Ms Cass-Gottlieb.

“If a business is going to impose a surcharge or levy and represent that it’s directly related to the high fuel costs, then the business must be able to substantiate and justify those representations.

“The ACCC will take appropriate action against breaches of Australian Consumer Law, such as misleading consumers about surcharges.”

Consumers or small businesses are encouraged to report concerns about businesses imposing large fuel surcharges to the ACCC.

The ACCC is also concerned these surcharges or levies are being used by some businesses or industry groups to increase prices across the board.

“Businesses are reminded that they need to make decisions about prices and levies independent of their competitors. Coordination of prices by competitors is a serious breach of competition laws,” says Ms Cass-Gottlieb.