A sale is one of the oldest tricks in business marketing, and it still works. A bold “was” price with a lower “now” price beside it gets attention fast. That is exactly why the Australian Consumer Law cares about how those prices are shown. If the saving you advertise is not real, the ad can mislead people even when every number on it is accurate.
The ACCC has published guidance on two price advertising for years. It also keeps a close eye on big sale events like Black Friday and Boxing Day. The guidance is written for businesses in general, not just for the large chains. This guide explains what the ACCC says and how to keep your own sale ads honest.
What a was/now price tells the customer
When you put two prices side by side, you are making a claim about savings. The ACCC uses the example “WAS $275 NOW $149” in its advertising and selling guide on two price comparisons. It says a price shown this way implies the buyer will save the difference between the two figures. So the customer reads it as a saving of $126, not just as a price of $149.
That claim has to stand up. The ACCC says savings claims may be misleading if the product has never been sold at the higher price. They may also mislead if it was only sold in a limited amount at that price immediately before the sale. In plain terms, the “was” price needs to be a price people actually paid, not one invented for the ad.
The same thinking applies to strikethrough prices on a website. A crossed out figure next to a new one sends the same message as “was” and “now”. In April 2014 the ACCC said its updated guide covered both “was/now” and strikethrough pricing. It also said businesses must make sure consumers are not misled about the savings they can achieve.
When a sale is not really a sale
The word “sale” carries its own meaning. The ACCC lists a “sale” price that is not actually a temporary sale price as one form of misleading price claim. If your “sale” price is really your everyday price, the label does not fit. Customers expect a sale to end and the price to go back up.
Your product pages carry those claims too. A shopper who lands on a sale page and feels tricked rarely stays, which links back to the basics of stopping visitors bouncing away from your site. Clear prices and honest labels do more for trust than a flashing discount badge. They also save you from fixing a page later.
Bait advertising and limited stock
Bait advertising is another problem area. The ACCC describes it as promoting prices, often sale prices, on products that are not available or only available in very limited numbers. It is not misleading if you are upfront that the item is in short supply or only on sale for a limited time. So if you only have five units at the special price, say so in the ad.
Fine print, free offers and storewide claims
Headline offers get read first and fine print gets read last, if at all. The ACCC warns that an item advertised as “free” can mislead when conditions apply. A free offer that needs an extra payment the customer was not told about is likely to be misleading. The ACCC gives fine print as an example of how a headline offer can mislead.
Storewide discounts work the same way. The ACCC says a “storewide” discount may mislead if the fine print excludes some products. Price claims can also mislead if GST or other costs are left out of the price you display. The safest habit is to make sure the headline is true on its own.
Good layout helps here. If your conditions matter, put them where people will see them, not in pale grey text at the bottom of the page. The ideas in our tips for designing an attractive website apply to sale banners as much as to home pages. Readable text and sensible contrast make the offer clear for everyone.
What the ACCC flagged in recent sales
On 18 December 2025 the ACCC warned major retailers about Boxing Day sales advertising. It said it had written to several major retailers before those sales. The letters reminded them of their obligations under the Australian Consumer Law. They followed a sweep of Black Friday sales, where initial findings showed retailers still using potentially misleading tactics. The ACCC said it expected retailers to avoid misleading “was/now” or strikethrough pricing.
The same release named some other tactics that caught its eye. Each one gives customers a wrong idea of the deal. They are worth checking against your own ads:
- Countdown timers that do not match how long the sale really runs
- “Up to” discounts where the words “up to” are hard to see or only a few products get the top discount
- “Sitewide” or storewide claims that leave out many products
- Fine print that limits a headline offer, such as deals that are only for members
The release also noted that in June 2025 Michael Hill, My House and Hairhouse online paid penalties. Those penalties related to alleged misleading Black Friday sitewide sales claims. ACCC Deputy Chair Catriona Lowe told shoppers to “focus on the final price, not the advertised discount or promotion”. That advice is a fair test for any business writing its own sale copy.
Penalties are real
The ACCC has taken was/now pricing to court before. In its April 2014 release it noted that Zamel’s was fined $250,000 for misleading consumers about its “was/now” jewellery prices. The same release mentioned a $1 million penalty against Scoopon. That case involved misleading businesses about the cost of running deals and misleading consumers about refund rights and advertised prices.
A simple checklist before you run a sale
Start by checking the “was” price against your sales records. If you cannot show the product genuinely sold at that price before the sale, drop the comparison. Then check the end date and make sure any countdown matches it. Finally, read the headline on its own and ask whether it would still be true with the fine print hidden.
Keep records of what you sold and when. Many online stores store this in their order history, and our beginners guide to WordPress web design covers the kind of platform where those records often live. Price history is easy to lose when a site is rebuilt, so export it first. Good records are your best answer if anyone asks how you set the “was” figure.
Think about who sees the offer, too. If you email sale offers to past customers, the way you collect customer information on your website matters as well. The same honesty should run through the email, the landing page and the checkout. A customer should see the same price story at every step.
Frequently asked questions
Can I use a recommended retail price as my “was” price?
The ACCC’s two price guidance focuses on whether the saving you claim is real. A comparison can mislead if the product was never sold at the higher price. Check the full ACCC guide for your situation before using any reference price. If in doubt, show your current price without a comparison.
Is “best prices in town” misleading?
The ACCC says wildly exaggerated and vague claims, which it calls puffery, are generally not considered misleading. Its example is “best steaks on earth”. A specific claim about price or savings is different because customers can rely on it. Keep factual claims factual and checkable.
Can I run a sale with limited stock?
Yes, as long as you are upfront about it. The ACCC says it is not misleading to advertise a product that is in short supply if you say so. Problems start when you promote a price on stock you do not really have. Say how many units are available or how long the price lasts.
Do these rules apply to small businesses?
The ACCC says its advertising and selling guide is there to help business owners avoid misleading customers. It is not limited to big chains. The big retailers simply get more attention during major sales. A small online store makes the same promises to its customers.
This article is general information about Australian Consumer Law and ACCC guidance, which can change. It is not legal advice. Speak with a qualified lawyer about your own advertising.
