Can You Change Prices After A Customer Orders?

Priya runs an online skincare store in Melbourne. On Monday morning, she wakes up to 80 orders for a serum that should have been listed at $89, but was accidentally uploaded at $8.90.

It's a horrible feeling. You don't want to lose money on every order, but you also don't want angry customers, chargebacks, bad reviews or a complaint to the ACCC.

If you're wondering whether a business can change the price after purchase in Australia, the honest answer is: sometimes, but it depends on whether the customer order has already been accepted and what your terms say. The Australian Consumer Law also matters, especially if your pricing could be seen as misleading.

Can A Business Change The Price After A Customer Orders?

Usually, no - not after you have accepted the customer's order, unless your contract clearly gives you that right and the term is legally valid.

The key question is whether your customer contract has already been formed. In an online store, that can depend on your website flow, emails, payment process and business terms and conditions.

For example, a contract may be formed when:

• the customer clicks place order and pays, and your website says the order is confirmed
• you send an order confirmation email that accepts the order
• you start providing the service or dispatch the goods
• your terms say acceptance happens at a particular step, and that step has occurred

If the contract has already been formed, changing the price without the customer's agreement can put you in breach of contract. Practically, that can lead to refund demands, complaints, payment disputes and reputational damage.

If the contract hasn't yet been formed, you may be able to reject the order, correct the price and refund any payment. This is why many online businesses use terms that say an order is an offer from the customer, and the business only accepts it when it sends a dispatch confirmation or separate acceptance email.

That wording is useful, but it isn't magic. If your checkout says your order is accepted, takes payment immediately and sends a final confirmation, it may be harder to argue you had not accepted the order yet.

Do You Have To Honour An Advertised Price In Australia?

Not always, but you must not mislead customers about your prices under the Australian Consumer Law.

The Australian Consumer Law, which is found in Schedule 2 to the Competition and Consumer Act 2010, prohibits misleading or deceptive conduct and false or misleading representations about price. The ACCC and state or territory fair trading regulators can take action where pricing practices are misleading.

If you accidentally advertise the wrong price, you aren't automatically forced to sell at that price in every situation. But you need to act carefully.

If There Are Two Prices Displayed

If you display multiple prices for the same goods, the usual rule is that you should either sell the item for the lowest displayed price or withdraw it from sale until the pricing is corrected.

For example, if your product page says $49 but the cart says $59, you should fix the inconsistency quickly. If you keep selling while both prices are displayed, you increase the risk of a complaint.

If The Price Is A Genuine Mistake

A genuine pricing mistake can be different from a deliberate promotion. If a $1,200 item is accidentally listed for $12, many customers will recognise something has gone wrong.

Still, you should avoid language that makes customers think the order is final if you may need to reject it. You should also correct the error as soon as you spot it, keep a record of what happened and communicate clearly with affected customers.

What you shouldn't do is use pricing error wording as a routine way to cancel orders when demand is high or costs have gone up. That can look unfair, misleading or commercially unreasonable.

Can You Cancel An Online Order Because Of A Pricing Error?

Yes, you may be able to cancel an online order because of a pricing error if your order wasn't yet accepted, your terms allow it and you refund the customer promptly.

Here is a practical example.

Ellie runs a homewares store in Sydney. A handmade lamp should be listed at $199, but a CSV upload error lists it at $19.90. Overnight, 40 customers place orders and pay through the website. Her terms say:

• placing an order is an offer to buy
• the business may reject an order before dispatch
• the business can cancel and refund orders affected by obvious pricing errors
• an order is accepted only when a dispatch confirmation is sent

Ellie notices the mistake at 8:00 am. No lamps have been dispatched and no dispatch emails have been sent. She pauses the product page, screenshots the error, checks the upload file and emails customers by 10:00 am. She explains the genuine mistake, cancels the orders and processes full refunds.

That's a much stronger position than if Ellie had sent emails saying your order has been accepted, packed the lamps and then tried to charge customers another $179.10 each.

If you're cancelling orders, keep your message calm and factual. A good customer email usually includes:

• a short apology
• what the pricing error was
• that the order hasn't been accepted or can't be fulfilled at that price
• when the refund will be processed
• who the customer can contact with questions

You don't have to over-explain or blame a staff member. The goal is to fix the issue quickly and avoid confusion.

What Should You Do First If You Discover A Pricing Mistake?

First, stop the mistake from getting worse, then work out which orders have been accepted and which ones have not.

When a pricing error happens, speed and records matter. Try not to make a rushed promise to customers before you understand the legal position.

Step 1: Pause The Product Or Booking Page

Temporarily remove the product, service package or checkout option from sale. If that isn't possible, correct the price and keep a screenshot showing when the correction happened.

Step 2: Save Evidence Of The Error

Keep records of:

• the incorrect price and the correct price
• when the error started and when it was fixed
• how many orders were affected
• what automated emails customers received
• your website terms at the time of purchase
• any internal cause, such as a data feed, app, staff upload or supplier file

Step 3: Check Your Order Acceptance Wording

Look at your checkout pages, email confirmations, invoices and terms. Do they say the order is accepted immediately, or only after you confirm dispatch, availability or booking acceptance?

Step 4: Decide On A Consistent Customer Response

For affected customers, decide whether you'll honour the price, cancel and refund, offer a discount at the correct price, or fulfil some orders but not others. Be careful with inconsistent treatment, especially if it could look arbitrary or unfair.

Step 5: Get Help If The Numbers Are Large

If many orders are involved, the loss is significant or customers are threatening complaints, get advice before sending a final response. A short delay to get the wording right can save a much bigger dispute later.

What Should Your Terms And Conditions Say About Pricing Errors?

Your terms should clearly explain when orders are accepted, how pricing errors are handled and what happens if products or services are unavailable.

This is one of those areas where generic website terms often miss the practical detail. Your wording should match how your business actually sells, invoices, books, dispatches and refunds.

A pricing and order acceptance section often covers:

1. Prices: state that prices are in Australian dollars and whether GST, delivery and other charges are included or added at checkout.
2. Quotes: explain how long quotes are valid for and when a quote becomes binding.
3. Order Placement: say that the customer places an order through your website, booking form or written acceptance.
4. Order Acceptance: identify the exact moment you accept the order, such as dispatch confirmation, booking confirmation or written acceptance.
5. Pricing Errors: reserve the right to reject or cancel orders affected by genuine pricing or description errors before acceptance, with a refund of amounts paid.
6. Availability: explain what happens if stock, staff, materials or appointment times are unavailable.
7. Deposits: state whether deposits are refundable, when they're applied to the final price and what happens if either party cancels.
8. Variations: explain when prices can change for extra work, changed scope, delivery changes or customer-requested variations.
9. Refunds: set out how refunds are processed where an order is rejected, cancelled or can't be fulfilled.

A lawyer should tailor this before you use it. For example, a made-to-order furniture business, a beauty clinic taking deposits and a SaaS subscription business all need different wording.

You should also consider an unfair contract terms review before relying on broad terms that let you cancel any order or change any price whenever you like. Since 9 November 2023, unfair contract terms in standard form consumer and small business contracts can attract penalties under the Australian Consumer Law. A term is more likely to be a problem if it gives you a broad power but gives the customer very little protection.

How Do Quotes, Deposits And Availability Affect Price Changes?

They matter a lot because customers often rely on quotes, deposits and availability messages when deciding to buy from you.

Quotes And Estimates

A quote is usually a fixed offer to do the work for a set price, once accepted. An estimate is usually your best guide based on the information available at the time.

If you run a service business, be clear about which one you're giving. For example, if you quote $2,400 for a website build and the client accepts, you generally shouldn't later say it will be $3,100 unless the scope changes or your agreement allows it.

If you only give an estimate, say what could change the final price. This might include extra pages, urgent turnaround, third-party costs, additional revisions or site conditions.

Deposits

Deposits can help you cover upfront costs and protect your time, but the terms need to be clear. If a deposit is non-refundable, say so before the customer pays and explain when you may keep it.

Be careful with non-refundable deposits that are out of proportion to your real loss. If you keep a large deposit when you have suffered little or no loss, the customer may challenge it.

Availability

For online stores, stock availability matters. For service businesses, staff time, materials and booking slots matter.

If availability can change, your terms should say that orders or bookings are subject to confirmation. Your website should avoid promising guaranteed availability unless you can genuinely deliver on that promise.

This is especially relevant if you rely on suppliers. If your supplier's price increases after you have accepted your customer's order, that's usually your business risk unless your customer terms clearly allow a price variation for that situation.

Common Mistakes That Make Pricing Disputes Worse

The biggest mistake is treating pricing wording as a small admin detail. In practice, it can decide whether you can cancel an order, refund a customer or absorb a loss.

Watch out for these common issues:

• Your checkout says the order is final too early: if your system says confirmed or accepted before you have checked stock, pricing or availability, it may limit your options.
• Your automated emails conflict with your terms: if your terms say acceptance happens on dispatch but your email says thanks, your order has been accepted, customers will rely on the email.
• Your pricing error clause is too broad: a clause that lets you change any price at any time may be risky, especially for consumers and small business customers.
• You advertise discounts without enough stock: if you promote a low price but don't have reasonable supply, you could create bait advertising concerns under the Australian Consumer Law.
• You hide extra costs until late in checkout: delivery, mandatory fees and other unavoidable charges should be clear in your pricing display before the customer commits.
• You rely on supplier price changes as an excuse: unless your customer terms cover this properly, a supplier price rise doesn't automatically let you increase your customer's price.

Small wording changes can make a big difference here. Your terms should protect your business, but they also need to feel fair and clear to customers.

Key Takeaways

• You usually can't change the price after a customer order has been accepted unless your contract clearly and validly allows it.
• Whether an order has been accepted depends on your website flow, payment process, confirmation emails and terms.
• The Australian Consumer Law doesn't always force you to honour a genuine pricing mistake, but misleading pricing can create real risk.
• Your terms should cover pricing errors, quotes, deposits, availability, refunds and the exact point of order acceptance.
• If a mistake happens, pause sales, keep records, check your terms and communicate with customers quickly and clearly.

If you'd like help with your website terms, pricing error wording, customer order process or service agreements, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.