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The point of sale (POS) remains a pivotal moment in 2025 for both businesses and their customers. As a customer is about to make a transaction—whether in-store or online—the POS offers an ideal opportunity to highlight exclusive deals, flash sales, or loyalty rewards that your business is currently offering.
For customers, this is not only about unlocking extra savings; it’s also a moment to assess whether they want to continue supporting your business based on the value and transparency of the offer presented.
POS is an effective strategy to boost your sales, market your business and enhance customer engagement. In today’s dynamic market, integrating both traditional and digital POS tactics is essential, but it is equally important to ensure that every tactic complies with the relevant laws. As digital technology continues to evolve, be sure to check out our Online Business Privacy Guide for further insights.
In this article, we’ll explore POS advertising within the contemporary legal framework and demonstrate how it can be applied to your business’ advertising practices in 2025.
What Is Point Of Sale (POS) Advertising?
POS advertising is a marketing strategy that targets customers at the very moment they are about to complete a transaction, whether that purchase is made in person or via an online platform. While POS advertisements are often found near traditional checkout counters—such as on an EFTPOS machine—they can also appear in various digital formats throughout your website or mobile app.
Such advertising can be strategically arranged throughout a physical store or on your business’s website using signs, posters, digital displays, or interactive banners. The primary aim is to notify consumers of any special offers available during their transaction, thereby potentially increasing the overall sale amount.
Point Of Sale Advertising Examples
POS advertising is highly versatile. Common examples include prominent displays near a shop counter at checkout, “buy one, get one free” posters, or signs indicating a “3 for the price of 1” offer near a product. These methods are designed to capture your customer’s attention and encourage additional purchases.
| Example Ted runs an online candle store and is promoting floral scented candles. On his website’s homepage, a clear sign informs customers of the complimentary gift they will receive when purchasing a floral scented candle. |
| Example Hannah owns a service station franchise. To boost chocolate sales, she places a discounted display at the checkout counter, ensuring that customers notice the offer as they complete their transactions. |
What Laws Apply To POS Advertising?
When used correctly, POS advertising is a robust marketing tool. However, it is crucial to maintain your legal obligations towards consumers and ensure that your promotional tactics do not contravene any laws designed to protect their rights.
The principal legislation protecting consumers is the Australian Consumer Law (ACL). This law remains at the forefront in 2025, safeguarding consumer interests against misleading or deceptive business practices.
Australian Consumer Law
The core principles of the ACL applicable to POS advertising are detailed in the Advertising and Selling Guide provided by the Australian Competition and Consumer Commission (ACCC). Always refer to the latest version of these guidelines to ensure your advertising strategies are in line with current regulations.
The ACL’s aim is to balance the power disparity between consumers and businesses. Since businesses often control much of the information that influences purchasing decisions, the ACL empowers consumers to enforce their rights against unfair advertising or trading practices.
The key takeaway is that businesses need to be transparent and truthful when using POS methods to advertise their products. In today’s competitive landscape, maintaining clear communication and compliance not only avoids penalties but helps in building and sustaining consumer trust.
Let’s explore some of the critical aspects of these legal requirements in more detail below.
Misleading Or Deceptive Conduct
Any actions or statements that mislead or deceive consumers are illegal under the ACL. This includes any conduct—intentional or otherwise—that could cause a reasonable person to form a mistaken impression about a product or service.
Even if there is no deliberate intent to deceive, businesses can still be held accountable for misleading conduct. It is therefore essential to ensure that all advertising messages and interactions with customers are clear, consistent, and accurate.
Whether you are designing printed materials or training staff on customer interactions, ensure that all promotional messages are presented unambiguously and cannot be misinterpreted by a reasonable consumer.
Remember, non-verbal cues such as body language also play a role; even a slight shrug or a vague response can inadvertently mislead a customer. Clear and precise communication is key!
Consumer Guarantees
Consumer guarantees are inherent rights that consumers enjoy when purchasing products or services. These rights are inviolable and cannot be negated by contract terms, signage, or waivers. In 2025, these guarantees are particularly critical in the digital age, where rapid transactions and online promotions are the norm.
Consumer guarantees include:
- Products are safe to use and of an acceptable quality
- The goods are fit for their intended purpose
- Products match their description or advertised features
- Repairs and spare parts are available when needed
- Services are performed with due care and within a reasonable timeframe
While there are some exceptions to these guarantees, it is important to familiarise yourself with them to avoid disputes.
Unfair Contract Terms
Unfair contract terms are those that significantly disadvantage one party in a contract, often favouring the business over the consumer. Such terms are subject to strict scrutiny under the ACL.
Unfair contract terms apply to both consumer contracts and standard form contracts. Generally, a contract term will be considered unfair if it:
- Allows the business to limit or dismiss its contractual obligations
- Retains the power to penalise the consumer disproportionately
- Grants the business the authority to terminate the contract at any time
- Enables unilateral changes to the contract terms
As of 2025, penalties imposed by the ACCC for the inclusion of unfair terms have become more severe. Businesses are now expected to review and update their standard form contracts regularly to ensure compliance.
If you need assistance reviewing your contracts to avoid these penalties, contact our expert team who can review your contracts and answer your legal questions.
Bait Advertising
Bait advertising occurs when a business promotes a product in a way that suggests greater availability than is actually the case or fails to disclose that stock is limited. In 2025, such practices remain a clear breach of the ACL.
Sometimes, a business might offer an alternative product at a higher price when the advertised item is unavailable—a tactic known as bait and switch advertising. This practice misleads customers and is strictly illegal under current consumer laws.
Unsolicited Consumer Agreements
If your business uses direct sales methods such as door-to-door or telemarketing, it is essential to have a compliant Unsolicited Consumer Agreement in place. These agreements outline key details including cooling off periods, pricing, and business information, ensuring that such promotions meet ACL requirements.
Having an agreement properly drafted by a legal professional is highly recommended to ensure it meets your business’s specific needs and remains compliant with legislative updates in 2025.
How Does POS Advertising Work Online?
As of 2025, POS advertising has evolved significantly beyond traditional brick and mortar stores. It now plays a crucial role in the online shopping experience as well.
This approach means that promotions linked to a consumer’s transaction can be seamlessly integrated into your website—such as on the checkout page or beside product listings—providing a cohesive and engaging digital experience.
Modern online POS strategies leverage real-time data and AI-powered analytics to personalise offers during the checkout process. For example, you can dynamically adjust discount offers or display urgent flash sales based on a customer’s browsing history. To ensure your digital promotions remain legally compliant, it’s worthwhile to review your online shop terms and conditions regularly.
What Are Labelling Requirements?
Labelling requirements refer to the mandatory information that must appear on product packaging. In 2025, these requirements have become even more stringent to enhance consumer safety and transparency. Whether you are a manufacturer or a seller, it’s important to ensure that all labelling obligations are met in accordance with the latest standards.
Details typically required on product packaging include:
- Weight or volume measurements
- A complete ingredients list
- Country of origin
- Manufacturer or distributor details
- Appropriate warnings and safety instructions
- Contact details for customer support
For further insights into your labelling obligations, please refer to our Industry Regulations Guide.
Key Takeaways
POS advertising can be highly beneficial for your business if executed in compliance with current laws. To summarise what we’ve discussed:
- POS advertising targets customers at critical moments – both in physical and digital transaction environments.
- The principles of the ACL, including those against misleading conduct and bait advertising, apply to all POS tactics.
- Online platforms are a vital component of modern POS advertising, utilising real-time data for personalised promotions.
- Labelling requirements mandate clear and accurate consumer information on product packages.
- Stay informed about 2025 digital trends and legal updates to ensure compliance and effective customer engagement.
If you would like a consultation on POS advertising rules or need advice on drafting compliant promotions, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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