MSRP vs RRP: Understanding Pricing Terms In Australia

Getting your pricing right isn’t just about covering your costs. The way you present and compare prices can shape customer trust, your brand positioning and your legal risk.

That’s why terms like MSRP and RRP matter. You’ll see them in supplier lists, promotional campaigns and on retail shelves - but what do they actually mean in Australia, how should you use them, and where are the legal lines?

In this guide, we’ll unpack the difference between MSRP and RRP, explain how they fit into a practical pricing strategy, and highlight the consumer and competition law rules you need to follow to stay compliant (and confident) when you advertise prices and discounts.

What Do MSRP And RRP Mean In Australia?

MSRP stands for Manufacturer’s Suggested Retail Price. It’s the price a manufacturer suggests a retailer charges for a product. RRP stands for Recommended Retail Price. In everyday use, RRP and MSRP are often interchangeable - both are recommended (not compulsory) prices suggested by a manufacturer, wholesaler or distributor.

The subtle difference is perspective:

• MSRP is a recommendation coming specifically from the manufacturer.
• RRP is a broader term for a recommended or “list” price commonly referenced in the market, whether set by a manufacturer or another supplier in the distribution chain.

In practice, both are just that - recommendations. Retailers generally remain free to set their own final retail price, provided they comply with Australian consumer and competition laws.

Example: You import an electronic accessory. The manufacturer provides an MSRP of $199. That gives you a benchmark for marketing and comparison, but you can still price higher or lower based on your costs, your market positioning and demand - so long as your advertising isn’t misleading.

How Do Recommended Prices Fit Into Your Pricing Strategy?

Recommended prices can be useful signals across your supply chain and in your marketing, but they should be one input among many when you set your retail price.

Why Businesses Use MSRP/RRP

• Consistency: A common recommended price can help align expectations across retailers and channels.
• Perceived value: A stable “list” price can reinforce your brand’s value proposition and simplify promotions.
• Discounting: Offers like “10% off RRP” are easy for customers to understand - if the comparison is genuine.

What To Consider When You Set Your Price

Use MSRP/RRP as a reference point, then set your own price based on:

• Your landed costs, overheads and target margins
• Competitor pricing and how crowded the category is
• Customer demand and sensitivity to price
• Brand positioning (premium vs value)
• Legal compliance - particularly how you advertise comparisons

If you’re a manufacturer or distributor, you can publish an RRP to provide guidance. If you’re a retailer, treat it as helpful context - not a rulebook.

Is It Legal To Set Or Enforce An RRP/MSRP?

There are two bodies of law to keep in mind: competition law and consumer law. They regulate different things.

Competition Law: Don’t Enforce Minimum Resale Prices

In Australia, it is lawful to set and publish a recommended price. However, you must not force or pressure someone to sell at or above that price. This is called resale price maintenance (RPM) and it is prohibited under the Competition and Consumer Act 2010 (CCA).

RPM can include:

• Refusing to supply (or threatening to refuse to supply) because a retailer won’t sell at or above the RRP
• Withdrawing discounts, promos or benefits if a retailer discounts below the RRP
• Contract terms that set a minimum resale price

The key point: recommendations are fine; pressure or contractual requirements around minimum resale prices are not.

If you work with distributors or resellers, build your commercial expectations around lawful tools (for example, product positioning, branding and non-price standards) and make sure your Distribution Agreement or Reseller Agreement avoids any clauses that could amount to RPM.

What About Maximum Prices?

Setting a maximum resale price cap is generally not the same as setting a minimum price. Under Australian competition law, maximum resale price provisions are not per se unlawful, but they can still raise competition concerns in some circumstances.

In short, avoid trying to control resale prices. If you’re considering any price-related term in your supply agreements, it’s wise to get targeted advice before you proceed.

Platform And Marketplace Rules

Online marketplaces and platforms often set their own rules for how prices and discounts are displayed. These platform rules are contractual - they don’t replace Australian law. You still need to ensure your listings and comparisons comply with consumer law, even if a platform allows a certain presentation.

Advertising Discounts And Comparison Prices Under The ACL

Once you start comparing your price to an RRP/MSRP (or any other reference price), the Australian Consumer Law (ACL) applies. The core rule is simple: don’t mislead customers.

Misleading Or Deceptive Conduct

The ACL prohibits misleading or deceptive conduct in trade or commerce, including how you display and compare prices. Everyday examples include using inflated RRPs to exaggerate a discount, or quoting an “RRP” that’s not a genuine, current reference price in the Australian market. See how section 18 of the ACL operates in practice.

False Or Misleading Representations About Price

Section 29 of the ACL also specifically targets false or misleading representations about the price of goods or services and the existence of a price advantage. If you say “Save $50 off RRP”, the RRP should be accurate, current and meaningful to your customers. You’ll find more detail in our guide to section 29 of the ACL.

Best Practices For Comparison Pricing

• Use a genuine RRP/MSRP: The reference price should be real, current and representative in Australia.
• Keep records: Keep evidence showing how you set or received the RRP/MSRP and when it applied.
• Be clear and specific: If needed, add a short qualifier like “RRP as at July 2025”.
• Avoid drip pricing: Ensure the price you promote is the price customers can actually pay at checkout.

For more on pricing presentation and promotions, check out our practical overview of advertised price laws in Australia.

Step-By-Step: Using MSRP/RRP In Your Business

1) Decide Whether You’ll Use A Recommended Price

If you’re a manufacturer or distributor, decide whether publishing an RRP/MSRP supports your brand and channel strategy. If you’re a retailer, confirm whether your suppliers provide one and how reliable it is in the Australian market.

2) Set Your Own Retail Price

Treat the RRP/MSRP as a guide. Price your products based on margins, demand and competitive positioning. If you’re building campaigns around “% off RRP”, sense-check the relevance and accuracy of the reference price.

3) Avoid RPM In Supply Contracts

Don’t include minimum resale pricing obligations and don’t pressure retailers around discounting. Focus your agreements on lawful quality standards, brand presentation and ordering terms. If you’re formalising relationships, get help drafting or reviewing a compliant Distribution Agreement or Supply Agreement.

4) Build Compliant Promotions

If you plan to reference RRP/MSRP in ads or on product pages, ensure your comparison is truthful and up to date. Align your wording, banners and disclaimers with the ACL’s rules on misleading conduct and price claims.

5) Prepare For Online Marketplaces

When selling on marketplaces, review the platform’s policies on price displays, crossed-out prices and comparison claims. Make sure your listings also comply with Australian consumer law - platform approval doesn’t automatically make an ad lawful.

6) Localise Overseas RRPs

If you import products, don’t rely on a foreign MSRP that’s simply converted to AUD. Shipping, taxes, and local competition can make an overseas list price unrealistic. Establish a genuine Australian RRP/MSRP before using it in marketing.

7) Keep Documentation

Keep records showing how you established the RRP/MSRP (for example, supplier communications and dates), when you displayed comparisons, and what offers were active. Good records support compliance and help resolve disputes quickly.

Legal Documents That Help You Price And Promote Safely

Pricing touches several parts of your legal toolkit. The right documents help your team stay consistent and compliant when you publish prices, run sales and work with suppliers.

• Website Terms & Conditions: If you sell online, these set the rules for website use and help manage risk around content, promotions and disclaimers. See Website Terms and Conditions.
• Online Shop Terms: Clear sales terms (payment, shipping, discounts, returns) reduce disputes and support transparent pricing. If you run a store, consider tailored online shop terms.
• Privacy Policy: If you collect customer data for orders, loyalty or marketing, a transparent Privacy Policy is essential under the Privacy Act and expected by customers.
• Warranties Against Defects: If you advertise guarantees or warranties alongside price claims, ensure your warranties against defects policy meets ACL requirements.
• Distribution/Supply/Reseller Agreements: Formalise product supply, branding and channel expectations - and avoid any clauses that stray into minimum resale pricing. You can start with a Distribution Agreement or Reseller Agreement.
• Advertising Guidance: A simple internal guide that covers how your team uses “RRP/MSRP”, comparison prices and savings language helps prevent missteps. Tie this to your public terms and campaign sign-off process.

Not every business needs every document on day one, but if you’re scaling, selling online or running frequent promotions, it’s smart to get your terms, policies and supplier contracts aligned early.

Key Takeaways

• MSRP and RRP are recommended prices - useful for reference, but not binding on retailers in Australia.
• Publishing a recommended price is lawful, but enforcing a minimum resale price is prohibited under the CCA as resale price maintenance.
• When you compare your price to an RRP/MSRP, the ACL applies - section 18 (misleading conduct) and section 29 (false price representations) are key.
• Use genuine, current reference prices, be clear in your ads, and keep documentation that supports your comparison claims.
• Structure your supplier relationships with compliant contracts and avoid RPM; rely on brand standards and lawful channel terms instead.
• Online sales need strong customer-facing terms, a compliant Privacy Policy and internal advertising guidance to keep promotions consistent and lawful.

If you’d like a consultation on pricing compliance, supplier contracts or your online terms, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.