Australian retailers be warned of pricing pitfalls

For many businesses, EOFY, Black Friday and Boxing Day are the biggest campaign and sale periods in their marketing calendars. The most alluring offers are presented to consumers in a bid to obtain their business when competition is rife and it has never been easier for consumers to shop around. However, businesses engaging in sale frenzies should be warned. Sweeping statements about the size and scope of discounts and ‘sitewide’ or ‘storewide’ sales should be navigated with caution.

The Australian Competition and Consumer Commission (ACCC), the Australian consumer watchdog charged with ensuring individuals and businesses comply with Australian competition and consumer protection laws, has published its 2025-26 compliance and enforcement priorities, including ‘Consumer and fair trading concerns in the supermarket and retail sectors, with a focus on misleading pricing practices’.

This priority, alongside the ACCC sweep of sales advertising by Australian businesses online and in store, and the more recent notification over alleged misleading Black Friday ‘sitewide’ sales by three retailers, highlights a crackdown by the regulator on practices that may have mislead consumers.

In this article, we’ll outline the relevant Australian Consumer Law obligations concerning false or misleading pricing practices, explore the ACCC’s recent determinations, and explain why this matters for marketers.

What does the law say?

Section 29 of the Australian Consumer Law addresses false or misleading representations about goods or services. Specifically, section 29 provides that:

A person must not, in trade or commerce, in connection with the supply or possible supply of goods or services or in connection with the promotion by any means of the supply or use of goods or services – make a false or misleading representation with respect to the price of goods or services.

To explain this simply, the law requires that businesses selling or promoting their products or services cannot mislead consumers, by giving them the wrong impression about the cost. This includes pricing practices like hiding extra fees, pretending there’s a discount when there isn’t, or making the price seem lower than it really is. The law requires that pricing be clear, honest, and not misleading in any way. In other words, the price should be represented clearly and truthfully.

The ACCC sweep on Black Friday sale advertising practices

In December 2024, the ACCC conducted an internet wide sweep of Australian retailers advertising Black Friday sales. The investigation identified several concerning pricing practices that may be misleading consumers. These included:

• Misleading “sitewide or storewide” discount claims when exclusions applied.
• Deceptive “was/now” pricing where retailers temporarily increased prices prior to dropping them for illusions of greater savings.
• Questionable use of Recommended Retail Prices (RRP) as a basis for discounts when the product had not recently been sold at this price.
• “Up to X% off” claims promoting large discounts when the full rate only applied to a handful of items.

The review saw the ACCC request several retailers to substantiate their pricing claims.

A guiding determination by the ACCC

In June 2025, the ACCC announced that three retailers have paid penalties of $19,800 each, for allegedly making false and misleading representations about their Black Friday sales.

One retailer, a prominent jeweller, promoted a “Member event 25% off sitewide sale” advertisement which was found to have contravened Australian Consumer Law because some of the products in its online store were excluded from the sale and not discounted.

A homewares retailer advertised "Up to 60% off RRP everything on sale + extra 20% off"; however, the extra 20% discount also had exclusions and did not apply to all products. The ACCC deemed this as misleading.

Finally, an online hair care supplies retailer claimed "Save 20% to 50% sitewide" when over a quarter of products on its website were not included in the sale offer, which the ACCC felt gave a false impression of the sale’s scope, and risked misleading consumers.

The ACCC emphasised that false representations could mislead consumers about the extent of discounts and the range of products included in sales, potentially contravening certain protection provisions in the Australian Consumer Law. Retailers should ensure their advertising accurately reflects the nature and scope of their sales promotions and that they must not engage in misleading or deceptive conduct, especially concerning pricing and discounts.

Why this matters for marketers

As these campaigns are pivotal periods in marketing strategies, ensuring they are navigated and actioned in compliance with Australia Consumer Law provisions is essential. Particularly so when the ACCC has indicated this as a key focus area in their 2025-26 compliance and enforcement priorities.

For marketers, promoting an offer in the most enticing way possible is part of the job. And when price is the foundation of the campaign, it can be tempting to over-promise in an attempt to capture more engagement and conversion. However, this can present compliance challenges, even if done unintentionally. The ROI of the campaign could quickly become undone if these promotions mislead consumers on pricing.

Compliance aside, consumers do not like to be ‘tricked’. Ensuring your promotions do not make false or misleading representations with respect to pricing will help reinforce consumer trust and loyalty. And you can’t put a price on consumer and brand trustworthiness.

Key takeaway

Being a responsible marketer means doing what is right by the consumer. And in an environment where every promotion is under scrutiny, transparency isn’t just compliant – it’s strategic. Marketers should treat pricing truthfulness not as a compliance box to tick, but as a brand trust asset.

By ensuring your pricing practices are clear and not false or misleading, you will meet obligations under Australian Consumer Law and establish a happy, trusting customer base, who will transact with confidence knowing they are not being misled.

For further guidance on false or misleading representations, you can consult these ACCC resources:False or misleading claims | ACCCAdvertising and selling guide. A guide for business

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