Tertiary education program

Bait advertising

Bait advertising is the practice of offering items for sale at very low prices to attract consumers to a business, in the hope that they will purchase other items as well as, or instead of, those advertised.

Bait advertising can be a legitimate form of advertising. However, it is prohibited by the ACL in instances where goods or services are advertised at a certain price and the business does not offer them for sale at that price in reasonable quantities, and for a reasonable time, or there are reasonable grounds for believing that the supplier would not be able to offer for supply those goods at that price in reasonable quantities for a reasonable time, and the supplier is aware or ought reasonably be aware of those grounds.

Whether something is reasonable will depend on the nature of the market in which the business operates and the advertisement. For example, if the advertisement makes it clear that the goods are available at the discount price for 'today only' this will limit the business's obligations to that day.