Price differentiation occurs when an NDIS Provider charges NDIS Participants a higher price for the same product, support, or service compared to other customers. The recently updated NDIS Code of Conduct Provider and Worker Guidance identifies price differentiation as a potential ‘sharp practice.’ In other words, it’s considered unfair to charge NDIS Participants more without a valid reason.
Expectations for Providers
- Honesty, Integrity, and Transparency: The NDIS Commission expects all registered and unregistered Providers to act with honesty, integrity, and transparency. This includes how they price their products and services for NDIS scheme Participants.
- Australian Consumer Law (ACL): Providers are also subject to the Australian Consumer Law. They must not mislead or deceive NDIS Participants or Plan Managers, make false statements, or include unfair terms in contracts related to pricing.
- Avoiding Sharp Practices: Providers should not engage in practices that unfairly disadvantage NDIS Participants. This includes price differentiation.
- Specific Prohibitions:
- Not charging NDIS Participants more than others for substantially the same product, support, or service without valid justification.
- Not promoting, advertising, or publishing higher prices for NDIS Participants compared to other people without valid justification.
Transparency and Explanation
- NDIS Participants and Plan Managers are encouraged to be informed purchasers. They can ask Providers questions about the quality and price of products and services.
- If Providers set different prices for NDIS Participants compared to non-participants, they should be able to explain the difference.
- Unexplained cases where NDIS Participants are charged significantly more than others for the same products and services are unacceptable.
As a Provider, what can you do?
- Explain Prices: Providers should be prepared to discuss their prices openly with NDIS Participants.
- Consistent Price Lists: Ensure that price lists align with integrity, honesty, and transparency. Consider including information explaining the basis for pricing.
- Review Service Agreements: Ensure that Service Agreements are clear and understood by both Providers and Participants.
Remember, fair pricing practices contribute to a positive experience for NDIS Participants and uphold the principles of the NDIS scheme.
