What are bait advertising laws in Australia?
Bait advertising is illegal in Australia. Businesses are prohibited from advertising products or services at attractive prices if they do not have a reasonable supply or intend to sell them at that price, aiming to lure customers into buying other, more expensive items.
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How it works in practice
What is Bait Advertising?
Bait advertising occurs when a business advertises goods or services at a very low price to attract customers, but then fails to supply the advertised product in reasonable quantities or for a reasonable period. The intention is often to pressure customers into purchasing a different, typically more expensive, product or service once they are in the store or on the website. This practice is prohibited under Australian Consumer Law (ACL).
Legality Under Australian Consumer Law
The Australian Consumer Law (ACL) prohibits bait advertising as a form of misleading or deceptive conduct. Businesses must ensure that any advertised product is available in reasonable quantities for a reasonable time, or they must clearly state any limitations on stock or availability. Failing to do so is a breach of section 35 of the ACL.
Business Obligations
Businesses have a legal obligation to honor advertised prices and stock levels. If they advertise a special offer, they must be able to meet the expected demand. If stock is limited, this must be clearly and prominently disclosed in the advertisement. The aim is to prevent consumers from being lured by false promises and then disappointed or coerced into an alternative purchase.
Important exceptions
Bait advertising laws do not apply if a business genuinely runs out of stock due to unforeseen high demand, provided they made reasonable efforts to supply the advertised product. However, they must still offer a raincheck or equivalent product if possible. The law also permits advertising limited stock, but these limitations must be clearly and prominently disclosed to consumers within the advertisement itself. If the advertisement is a genuine error, the business is still responsible but typically offers a remedy.
What you should do now
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Review the advertisement carefully for any disclaimers about stock limitations or duration of the offer.
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Contact the business directly to inquire about the availability of the advertised product or service.
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Gather evidence, such as screenshots of the advertisement and records of your interactions with the business, if you suspect bait advertising.
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Report the business to the Australian Competition and Consumer Commission (ACCC) or your state/territory fair trading body.
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Seek further advice from a consumer protection agency if you believe you have been misled and want to pursue a remedy.
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