VIC Are Blanket Fees for Invoicing Allowed under Australian Consumer Law?

[Curiousgeorge]

I have recently received a renewal registration notice for my daughter's ballet lessons of which had some new terms and conditions. One of which is an invoicing fee of $5 per term. I have heard of late invoice fees but not a blanket fee for covering the costs of invoicing.

The current fees for a term are approximately $250

Although the fee isn't large, I would still like to know if this is normal practice under Australian Consumer Law.

Thanks in advance

 

[Louise4007]

Hi Curiousgeorge

Generally contractual terms include those prepared by a supplier of goods or services; (in your case ballet lessons = service) to a consumer. They are not subject to negotiation usually but instead are offered on a 'take it or leave it' basis.

A supplier of goods or services would need to impose a fee or charge not related to the costs incurred to meet the criteria of an unfair or unconscionable contract actionable under Australian Consumer law. For example, it could be argued by the ballet school that a $5 invoice fee is reasonable in the circumstances to cover costs associated with preparing the tuition invoice (stationery etc); therefore is not unfair or unconscionable.

See Consumer Affairs Victoria - Consumer Affairs Victoria
Regards