Pricing regulations

When you price your products or services, or advertise a price, you need to comply with a number of regulations including:

Comparative pricing

Comparative pricing is where you compare the sale price of a product or service to a former price. For example 'was–now' advertising, strike-through pricing and comparisons with the Recommended Retail Price (RRP). If you are in any way misleading or untruthful when advertising a price comparison, you are in breach of the Competition and Consumer Act 2010.

Recommended Retail Price (RRP)

RRP is only a recommendation to the reseller. It's illegal for a supplier to pressure a reseller into selling their products at or above a certain price, or threaten to cut off supply if their price demands are not met.

Predatory pricing

Predatory pricing is when a business with significant market share reduce their prices for the purposes of eliminating or damaging smaller competitors. Predatory pricing is anti-competitive and complaints can be made to the Australian Competition & Consumer Commission (ACCC).

Price fixing

Price fixing is where two or more competitors agree on setting prices. Price fixing is illegal in Australia. This can be often confused with parallel pricing, which is a legitimate way of setting prices.

Multiple pricing

Multiple pricing is when a good is advertised with more than one displayed price. Typically, this is done in error. Under consumer law, a business must either sell the goods at the lower price, or withdraw the good from sale until the price is corrected.

Unit pricing code

Unit pricing is when a per unit price is calculated for a product using a standard measurement such as litres or grams. Unit pricing allows customers to compare the price and value of similar types of products. Under the unit pricing code it is compulsory for grocery retailers to display both a product price and a unit price for certain grocery items.

Different pricing for payment methods

Charges for different payment methods (e.g credit card surcharge) must be clearly labelled.

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