Consumer Watchdog Warns Hospitality Sector Against Misleading Easter Sunday Surcharges

Hospitality businesses cannot use public holiday excuses for Easter Sunday surcharges, as consumer advocates warn against misleading pricing under the Fair Trading Act.

By: AXL Media

Published: Apr 4, 2026, 7:00 AM EDT

Source: RNZ

The Legal Distinction of Statutory Holidays

Under New Zealand employment law, the distinction between a calendar holiday and a statutory public holiday is critical for pricing transparency. Good Friday and Easter Monday are the only days during the long weekend where employers are legally mandated to pay time and a half and provide a day in lieu. Consequently, a surcharge applied on Easter Sunday cannot be attributed to mandatory public holiday labor costs. Consumer NZ argues that using this specific excuse on Sunday is factually incorrect and potentially illegal under consumer protection statutes. Businesses are permitted to implement surcharges for general operational reasons, but they must remain honest about the underlying cause to stay within the bounds of the law.

Transparency and Disclosure Requirements

A primary concern for consumer advocates is the "hidden" nature of many modern surcharges. For a surcharge to be legal, it must be clearly disclosed to the customer before they commit to a purchase. This means signs must be prominently displayed at the entrance or on menus, rather than being tucked away behind counters or obscured in non-public areas. Jon Duffy noted that customers should have the opportunity to take their business elsewhere if they find the additional fees unacceptable. The Fair Trading Act specifically prohibits misleading conduct, and failure to provide upfront pricing information is a common point of contention for regulatory bodies like the Commerce Commission.

The Debate Over Paywave and Card Surcharges

The issue of holiday premiums coincides with a broader legislative battle regarding electronic payment fees. The government previously introduced a bill aimed at banning in-store card surcharges, such as those applied to Paywave transactions, to reduce the financial burden on shoppers. However, this legislation has stalled in Parliament following the Finance and Expenditure Committee’s report. Recent developments suggest internal political friction, with the ACT party withdrawing support for a blanket ban. ACT argues that retailers would simply absorb the costs by raising base prices across the board, potentially masking the true cost of transactions and providing no real relief to the consumer.