Pricing Practices and the Australian Consumer Law — How to Stay Compliant and Build Trust

Pricing is one of the most powerful levers in business. It can position your brand, drive urgency, and convert browsers into buyers. But under the Australian Consumer Law (ACL), pricing is not just a marketing choice - it’s a legal obligation. If your pricing practices mislead customers, even unintentionally, you could face complaints, penalties, and serious reputational damage.

This guide explains how the law applies to pricing in 2025, the common mistakes that catch business owners off guard, and practical steps you can take to ensure your prices are both persuasive and legally compliant.

Why Pricing Compliance Matters

Consumers rely on price to make purchasing decisions. The law recognises this and sets a high standard for transparency. The ACL requires that prices be displayed clearly, accurately, and in a way that does not mislead customers about the value they are getting.

This means you must present the total price - including GST and mandatory fees - upfront. You must not use inflated “was/now” pricing to create the illusion of a discount that does not exist. And if you use urgency tactics such as countdown timers or “only 3 left” banners, those claims must reflect reality.

Non-compliance is not just a risk for big corporations. Small businesses are also investigated for pricing breaches, and penalties can include infringement notices, court-ordered corrective advertising, and even civil penalties.

And the impact that follows is not just monetary, it’s also reputational. Today’s customers are quick to share screenshots of misleading practices, and a single viral post can undo months of trust-building.

Common Pitfalls

One of the most frequent issues is comparative or “was/now” pricing. If you claim a product “was $499, now $199,” the higher price must have been genuinely offered for a reasonable period of time before the promotion. Token price increases designed solely to create a fake discount are unlikely to pass legal scrutiny.

Another problem area is urgency marketing. Countdown timers that restart every day or perpetual “limited time” offers can create a false impression of scarcity, which is considered misleading conduct. Similarly, advertising a “from $X” price without making it clear that very few products are actually available at that price may mislead customers about what they can expect to pay.

Businesses also get into trouble with drip pricing - revealing extra fees, GST, or surcharges only at checkout. The ACL requires that unavoidable fees be included in the displayed price from the outset so customers know exactly what they will pay before they commit.

Building a Legally Sound Pricing Strategy

The key to compliant pricing is honesty and consistency. Review your pricing history and ensure that any discount claims are based on real data. Keep records of when a product or service was sold at the higher price so you can substantiate the claim if challenged.

Be upfront about all fees, including GST and mandatory charges, at the very first point a customer sees the price, not just at checkout. If you are running a promotion, set clear start and end dates and stick to them. And if you use urgency or scarcity messaging, make sure it reflects actual stock levels or availability.

This approach not only keeps you compliant but also builds credibility with your audience. Customers are more likely to trust a business that is clear and transparent, which in turn drives stronger long-term relationships.

Final Thoughts

Pricing is one of the most visible aspects of your business, and it is one of the first things customers notice when deciding whether to buy from you. Getting it right is not just about avoiding penalties. It is about building trust and positioning your business as credible and professional.

In 2025, with regulators focused on pricing transparency and consumers more informed than ever, it pays to be proactive. Conduct a pricing audit, document your promotional history, and make sure your website, funnels, and terms of trade align with the ACL.

Next step: If you are unsure whether your pricing strategy is compliant, we can help. Book a 1:1 strategy call to review your pricing practices.

---

This blog is intended for general information purposes only and does not constitute legal advice. The content is based on Australian law and may not be current at the time you read it. Legal requirements may vary depending on your circumstances. Always seek independent legal advice tailored to your specific situation before acting on any information provided.