If you are concerned by a pricing practice that you have seen, follow the steps at the bottom of this page to make a complaint.
Provide a single cash price inclusive of all compulsory components, such as GST or other taxes
Businesses are required to provide consumers with a single cash price for the products or services they offer. The single price means the minimum total cost that is able to be quantified (or calculated) at the time the representation is made.
The single price must include any charges a consumer must pay to purchase the product or service, such as administration fees or booking fees, as well as taxes, duties, fees, levies or charges payable by the consumer for the supply of the product or service.
The cost of optional extras—additional charges that a consumer can choose to pay – does not need to be included. The cost of sending a product to a consumer also does not need to be included in the single price; however, it must be specified in the advertisement if it is known.
Ensure that reasonable quantities of goods are available for a reasonable period of time at that price if goods are on an advertised sale
Sometimes traders will try to attract you to their business by advertising goods or services at special prices. If they do not have a reasonable supply of the good available at that price and sell out very quickly, this may be considered bait advertising. What is 'reasonable' depends on a number of factors, such as:
how many items of the product are usually sold
the type of product and the way it was promoted
the sales expectations of the trader.
If a trader has genuinely underestimated the popularity of a sale product, they may offer you a raincheck so you can purchase the product at the special price when it is restocked or offer you an alternative product of an equivalent standard at a similar price. If a trader responds like this, then it is unlikely to be considered bait advertising.
Ensure that any price comparisons they make are genuine and accurate
Comparative pricing is a marketing tool used by traders to compare current selling prices to their former or future prices. As with all forms of advertising, any claims made by traders in relation to price must be honest and accurate and must not mislead or deceive you.
The following are types of price comparison practices commonly used by traders:
Products or services advertised with a 'was'–'now' price claim should accurately reflect a comparison between the previous price ('was') and the current price ('now') being offered.
Further, the actual previous price must have been offered for a reasonable period prior to the discount offer commencing so that it is a genuine offer and not just a price that has been inflated to make a sale price seem more attractive.
For example, a retailer must not advertise a jacket for $85 ('now' price) discounted from $100 ('was' price), if that retailer does not normally sell the jacket for $100 or if the jacket has been offered at the higher price for only a short amount of time.
Strike-through pricing is where the higher price of a product is crossed out and a second lower price is offered.
To avoid breaching the Trade Practices Act, the seller of the goods must have offered these goods at the higher price for a reasonable period of time—that is, it must be a genuine pre-sale price.
For example, if a swing tag on a dress has a price of $100 crossed out and a new price of $70 offered, the dress must have been available at that price before the new price was applied and have been offered at that price for a reasonable period of time.
Comparisons with the recommended retail price (RRP)
Advertising or promotions of 'savings' or 'discounts' on the RRP of goods and services are designed to convince potential customers they are getting a good deal because they are getting it for a price less than the RRP.
If businesses do not normally price their goods at the RRP, it may be misleading to give you the impression that they do.
Look out for misleading or deceptive price comparisons. If you are not sure whether a price comparison is accurate, shop around and see what other traders are selling the product for. You can also ask the trader if they really did sell the product at a higher price before they claim to have reduced it.
Have you tried to resolve your concern with the trader? Tell the trader you are unhappy.
If you think you have been misled about the price of your purchase, you should attempt to resolve your concerns with the trader.
If you are not sure how to approach the trader or you are unable to negotiate a suitable resolution, follow the steps on our How to complain page. This page can help you write a letter to a trader and give you guidance about who else you can contact for assistance.
If you become aware of misleading conduct you should report the matter to us, as it may be valuable in our future compliance work—see Help ACCC help consumers.
We can take action in court against corporations and related individuals involved in misleading conduct, and may apply to the court for an injunction and other orders. In enforcing consumer protection laws, we focus on industry-wide conduct and conduct that affects many consumers, to achieve outcomes.
We cannot take action in all circumstances of misleading conduct. We are more likely to take action against a business for misleading pricing or advertising if it has been carried out through a medium that reaches a wide audience, such as over the internet, on national television, or through a nation-wide print advertising campaign.
While we use enforcement action to obtain compliance, our preferred option is to show businesses how to take preventative steps to ensure that contraventions do not occur.
Could the office of fair trading in my state help me?
There are offices of fair trading in each state and territory that can help with local issues of misleading pricing—if the business involved is a local trader, or the matter is within a certain locality. In some circumstances the offices of fair trading can help you to resolve issues with businesses, or provide information about lodging claims in your local small claims tribunal.
My concern relates to a financial product or service. Could the Australian Securities and Investment Commission help me?
The Australian Securities and Investments Commission (ASIC) is responsible for consumer protection in financial services. If you have been misled by a business promoting a financial product, including investments, superannuation, banking and insurance, you should contact ASIC on 1300 300 630 about your rights. The ASIC's consumer website, FIDO, might also have answers to your questions.
If you have suffered a loss as a result of a business' misleading or deceptive conduct or misrepresentation, you may have a private right of action under legislation. Courts can order damages, injunctions and other orders against businesses found to have engaged in misleading or deceptive conduct. If you have lost money as a result of misleading conduct, you may need to seek legal advice about taking court action against the business involved. Alternatively, depending on the amount of money involved, you may be able to lodge a claim in your local small claims tribunal.
