Aldi under fire on disclosure of credit card, tap-and-go fees
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The corporate regulator is expected to grill Aldi over its failure to consistently notify customers of fees for using credit cards and ‘tap and go’ cards, six months after the discount supermarket promised it had done so.
Aldi told the Australian Securities and Investments Commission it would improve its disclosure of the 0.5 per cent surcharge by October last year, it is understood. It said it would do so through signs at the entrance of the stores and the registers, and by ensuring its cashiers notified shoppers before payments were made.
But Aldi supermarkets visited by Fairfax Media have not consistently disclosed the surcharge, leaving customers disappointed and irritated. Fairfax Media spoke to Aldi customers outside Melbourne stores on Wednesday and none knew about the fee or were informed by their cashier.
The store in Prahran does not have signs at the entrance. Instead, like many stores, it displayed the warning in tiny print on a sticker at the register.
The Aldi store in Box Hill South put up signs in recent weeks, while the Balaclava store had none as at February.
Aldi customer and German citizen Claudia Scent said, “I didn’t know before now, lucky I paid in cash. I come from Germany and there’s no surcharge at Aldi there.”
St Kilda East resident Claire had just paid for some groceries with her credit card. “It would be nice to know. I’d like a bigger sign or for them to tell you,” she said.
“If for any reason an Aldi store does not have the required signage, we will ensure that this is corrected immediately,”
Aliska Angyal-Kvalic, of Greensborough, said, “They should probably let people know. If you had a sign people could read you wouldn’t need to tell people.”
A spokeswoman for Aldi said the supermarket had conducted an audit last year to ensure its stores had appropriate signs and stickers.
“If for any reason an Aldi store does not have the required signage, we will ensure that this is corrected immediately,” she said.
Aldi is the only supermarket chain to apply the surcharge on credit card and tap-and-go purchases. Woolworths, Coles, Costco and IGA supermarkets do not.
Under the ASIC Act, a failure to adequately disclose surcharges, or creating the impression that surcharges do not apply, may be misleading or deceptive.
But because Aldi’s was a voluntary undertaking, it’s understood there was no deadline for ensuring the signs were in stores, and there are no real consequences for failing to comply. ASIC can resume talks with Aldi, however, if it believes Aldi has not complied with its commitment.
Aldi has 367 supermarkets throughout Australia and is eyeing 15 per cent market share through expansion into Western Australia and South Australia, and double-digit store openings each year on the east coast.
Questions & Answers
Q.Which body is expected to question Aldi about its failure to disclose card fees?
Which body is expected to question Aldi about its failure to disclose card fees?
The corporate regulator is expected to grill Aldi regarding its inconsistent notification of fees for credit and 'tap and go' cards. This comes six months after the supermarket initially promised improvements to its disclosure practices.
Q.What methods did Aldi promise ASIC it would use to disclose the 0.5 per cent surcharge?
What methods did Aldi promise ASIC it would use to disclose the 0.5 per cent surcharge?
Aldi told ASIC it would disclose the surcharge via signs at store entrances and registers. Also, cashiers were meant to inform shoppers about the fee before payments were completed to ensure full transparency.
Q.What is the penalty for Aldi's failure to consistently disclose the surcharge?
What is the penalty for Aldi's failure to consistently disclose the surcharge?
As Aldi's commitment to improved disclosure was a voluntary undertaking, there are no real consequences for failing to comply with it. There was no deadline for implementing the signs in stores.
Q.Is Aldi the only supermarket chain that applies a surcharge on credit and tap-and-go purchases?
Is Aldi the only supermarket chain that applies a surcharge on credit and tap-and-go purchases?
Yes, Aldi is currently the only supermarket chain that applies this specific surcharge on credit card and tap-and-go purchases. Other major supermarkets like Woolworths and Coles do not.
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