When Is It Illegal to Use ‘Before / After’ or ‘Was / Now’ Price Claims Online?

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Why Do Businesses Use ‘Was / Now’ Price Claims?

‘Was / Now price claims are a common method of advertising discounts in Australia.. However, if not used correctly then it has the high risk of misleading customers.

The Australian Consumer Law (ACL) prohibits misleading or deceptive conduct which can include giving a false impression about the savings that a consumer may obtain in a was/now pricing situation.

Its important that the “was” price genuinely reflects the previous selling price for a reasonable period immediately before the promotion and that the ‘now’ price is not offered for an unreasonably long period.

False discount claims can lead to fines, enforceable undertakings, and damage to your reputation.

What Makes a Price Claim Misleading?

Common issues include:

  • Displaying a “was” price that was never actually charged or offered
  • Having the “was” price for a period too short
  • Having the “now” price for a period that’s too long
  • Advertising “limited time” discounts without actually limiting the timing
  • Using inflated original prices to exaggerate the saving

Transparency is key: customers must be able to rely on advertised pricing.

When Are ‘Was / Now’ Claims Legal?

To comply with the ACL:

  • Use the actual previous selling price, charged for a genuine period
  • Clearly state the duration of the discount and any relevant conditions
  • Ensure the “now” price is the price customers will actually pay

Clear and accurate pricing helps businesses maintain trust and avoid regulatory action.

How Should Online Retailers Display Price Claims?

Online retailers should:

  • Include disclaimers if limited stock or promotions are involved
  • Regularly review website pricing to ensure it remains accurate
  • Maintain evidence of past prices in case of disputes or audits

Documentation and consistency protect the business if challenged.

What Are the Consequences of Non-Compliance?

Misleading price claims can result in:

  • Investigations by consumer protection authorities
  • Enforcement actions, fines, or compensation claims
  • Negative publicity and loss of customer confidence

A proactive compliance approach minimises these risks.

Why Legal Guidance Matters

Legal advice helps businesses:

  • Draft compliant pricing and promotional policies
  • Avoid misleading or deceptive conduct in advertising
  • Respond appropriately to customer complaints or regulatory queries

Professional review ensures your marketing strategy is effective and legally safe.

For help reviewing promotional pricing or drafting compliant policies, contact Gladwin Legal.