ACCC Action Against Dendy Highlights Risks of ‘Drip Pricing’ for Australian Businesses

Published: 25 June 2025 | Source: ACCC Media Release

A recent penalty issued to Dendy Cinema Pty Ltd by the Australian Competition and Consumer Commission (ACCC) serves as a timely reminder to all Australian businesses selling online: price transparency matters.

What Happened?

Dendy has paid $19,800 in penalties after the ACCC issued an infringement notice over what’s commonly referred to as ‘drip pricing’ - where additional fees are only revealed late in the purchasing process.

According to the ACCC, Dendy failed to prominently display the full ticket price (including the unavoidable booking fee) at the start of the online booking journey. Instead, the total cost only became clear towards the end of the checkout process - potentially impacting consumers’ ability to make informed decisions.

“Consumers are sometimes lured into purchases they would not otherwise have made when businesses display only part of the price upfront,” said ACCC Deputy Chair Catriona Lowe.

This conduct may contravene the Australian Consumer Law (ACL), which requires businesses to clearly show the total minimum quantifiable price - including all mandatory or pre-selected fees - at the earliest possible opportunity.

Why It Matters to Your Business

The ACCC has made misleading surcharging practices and hidden costs a compliance and enforcement priority for 2025-26. This means businesses - especially those selling goods or services online - should expect greater scrutiny of their pricing practices.

Industries such as entertainment, travel, hospitality, and e-commerce are particularly vulnerable to falling foul of these rules.

The ACCC is also conducting a broader review of cinema industry pricing to assess whether similar non-compliant pricing practices are widespread.

Avoiding Drip Pricing Pitfalls: What You Can Do

While Bane Legal Services does not provide legal advice, we work with commercial lawyers who regularly assist Australian businesses with consumer law compliance, particularly around advertising and pricing obligations.

If your business:

• Sells products or services online

• Applies unavoidable booking or service fees

• Uses third-party platforms or plug-ins for pricing

• Operates in sectors where fees are often added late in the transaction

…it’s worth reviewing your online sales process now.

Need Help? We Can Match You With the Right Legal Support

At Bane Legal Services, we don’t provide legal advice - but we connect Australian businesses with experienced commercial lawyers who do. With over 30 years of real-world business experience, we understand what you’re up against and can help you find the right legal professional for your needs.

We help you ask the right questions, avoid the wrong assumptions, and stay ahead of regulatory risks.

Further Reading

To learn more about pricing obligations under Australian Consumer Law, visit the ACCC’s Price Display Guidelines.

Disclaimer:

This article is general information only and is not legal advice. Bane Legal Services is not a law firm. We are a trusted legal matchmaking service, helping Australian businesses find the right legal expertise.