What counts as misleading pricing in Australia?
Misleading pricing in Australia occurs when a business displays a price that is false, deceptive, or hides extra costs. Under the Australian Consumer Law, practices like bait advertising, fake discounts, hidden checkout fees, or inaccurate price comparisons are strictly illegal.
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How it works in practice
The Australian Consumer Law
In Australia, consumer rights regarding pricing are heavily protected under the Australian Consumer Law (ACL). Businesses are legally obligated to display prices that are clear, accurate, and completely transparent to the buyer. If a displayed price creates a false impression about the final cost of a product or service, it is considered misleading and illegal.
Common Misleading Practices
Misleading pricing can take several different forms. "Drip pricing" happens when a business advertises a low headline price but adds mandatory fees later in the online checkout process. "Bait advertising" occurs when items are promoted at heavily discounted prices, but the business does not have a reasonable supply to meet the expected consumer demand.
Fake Discounts and Comparisons
Another illegal practice is offering fake discounts. A business cannot claim an item is on sale if it was never actually sold at the "original" higher price for a reasonable period before the discount. Similarly, "was/now" pricing must reflect genuine previous pricing. Furthermore, when businesses fail to include mandatory taxes like GST in the displayed price, it constitutes deceptive conduct under the law.
Important exceptions
While businesses must display accurate prices, an honest mistake, such as a typographical error on a price tag or a website glitch, is not automatically considered illegal deceptive conduct. In these cases, the business is not legally required to sell you the item at the mistaken lower price.
Instead, they are legally permitted to withdraw the item from sale, correct the pricing error, and then offer it again at the proper price.
Additionally, optional extra fees, such as express shipping or premium gift wrapping, do not need to be included in the upfront headline price.
What you should do now
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Take clear screenshots or photos of the misleading advertised price, including any fine print or terms.
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Keep a copy of your receipt or the final checkout screen that shows the different or higher price you were charged.
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Contact the business directly, present your evidence, and formally request a refund of the overcharged amount.
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Wait for a response from the business's customer service or management team to resolve the pricing dispute.
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Submit a formal report to the Australian Competition and Consumer Commission (ACCC) or your state's fair trading agency if the business refuses to cooperate.
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