VIDEO ABOVE: Why is pink a more expensive colour? Jan Fran investigates.
Some online stores have not removed GST from feminine hygiene products since a landmark tax cut was introduced this year, according to Australia's consumer watchdog.
The Australian Competition and Consumer Commission says a number of smaller online retailers are yet to reduce prices in line with the federal government's decision to cut GST from products like tampons and pads.
The goods and services tax was removed from menstrual products on January 1 this year. According to the ACCC, that should have resulted in a nine per cent cut to the shelf price of the products.
The watchdog has found that although there was no legal requirement to enforce the tax cut, most businesses sampled have reduced prices as advised.
"The vast majority of retailers sampled were well prepared for the removal of the GST, and reduced retail prices of menstrual products by the expected 9.1 per cent," said ACCC Acting Chair Delia Rickard.
Priceline, Target and Kmart dropped prices by between eight and 16 per cent.
In some cases, the shelf price of some menstrual products were slashed by more than 30 per cent - due in part to items already being discounted outside of the tax cut.
The ACCC report also noted that in certain instances, the reduction didn't happen: this was because the stock was already on clearance, or there'd been errors in previous pricing.
In cases where the ACCC found the price had not been reduced, the retailer was contacted and the error often quickly amended.
Making a bigger profit
The consumer watchdog says some businesses did use the changes to increase their own profit margins - but this was only a very few number of businesses, and often only on one or two products.
The ACCC says it's only received two consumer complaints over the past few months in response to the changes.
In one case, there were concerns that a retailer may be misleading consumers by using a "was/now" sale sticker to pass the GST cut as a sale item.
In another, a consumer reported that an eBay trader claimed to be collecting GST on the product - even after it had been removed.
