Tertiary education program

Advertisements and price claims

As price is an important factor in consumer decision making, special care should be taken to ensure that statements about price are not misleading. For example, consumers may be misled if products are offered 'free' but on closer examination 'conditions apply', or if price is specified however GST is not included.

See: ACCC v Nationwide News Pty Ltd [1996] FCA 762 and ACCC v Signature Security Group Pty Ltd [2003] ATPR 41-908

It is also important that a firm doesn't mislead its customers about the potential savings that may be available for its products or services. For example, businesses often advertise a sale by using statements such as '$99 $49.50' or 'WAS $275 NOW $149'.

Great care should be taken when making representations like this as they imply to consumers that they will save an amount (being the difference between the higher and lower price). If the products or services advertised on sale in the manner demonstrated above have not been sold at the higher price, or if only a very limited quantity was sold at the higher price prior to the sale commencing, these advertised savings are likely to be misleading or deceptive.

See: The Jewellery Group Pty Ltd v ACCC [2013] FCAFC 144