Misleading pricing occurs when a business creates a false or misleading impression about the true cost of goods or services, even where the advertised price is technically correct.
Under the Australian Consumer Law, businesses must ensure consumers can understand the real price they will be required to pay, including any unavoidable fees, charges, surcharges or conditions affecting price.
Common forms of misleading pricing include hidden fees, drip pricing, misleading discount claims, “was/now” pricing, and headline prices that are qualified by fine print or disclosures that appear too late in the purchasing process.
Courts assess pricing representations by examining the overall impression created for an ordinary consumer, not merely whether individual statements are literally true.