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Australian businesses are generally free to set their own prices for goods based on their business needs, but in 2025 the regulatory landscape has evolved to ensure greater transparency and fairness.
That said, there are limitations to setting prices.
The main reason for having pricing regulations is to maintain fair competition in the market and protect consumers. Recent amendments and stricter enforcement measures by the ACCC mean that if businesses don’t follow these regulations, they could face significant penalties. For more information on your legal obligations, our guide on business laws is a great resource.
So when it comes to setting prices, it helps to know what the rules are.
Some businesses may refer to the ‘Recommended Retail Price’, or ‘RRP’, when choosing prices for their products.
Do you ever wonder what RRP actually means? And whether you actually need to follow it?
RRP: The Need To Knows
RRP is a price set by the supplier as a recommendation to the retailer. It’s exactly what it sounds like: a recommendation.
There are some suppliers who try to enforce a minimum retail price by threatening to withdraw distribution unless a reseller sells at a certain price – however, under current 2025 guidelines and the Competition and Consumer Act 2010, mandating a fixed RRP is illegal. For further insights on fair trading practices, check out our article on misleading or deceptive conduct.
Whether you’re a supplier or a reseller, it’s important to understand the legal limitations of RRP. Remember, while it serves as a guideline, you are not legally bound to sell at the recommended price.
Bottom line, RRP is just a recommendation – so let’s consider the other laws around setting prices.
Comparative Pricing
Sometimes you’ll see companies that advertise a huge discount from the RRP. It might look something like: “RRP $300 down to $100 at our store!”
Or you might see: “Originally $500, now only $250!”
This type of comparative advertising isn’t always illegal – however, under 2025 Australian Consumer Law it becomes unlawful if the claims are untrue or misleading. For example, you can’t temporarily display a high price to then offer a lower price just for the sake of the advertisement, as this could be viewed as bait advertising.
As a retailer, you could face severe penalties for misleading and deceptive conduct if you use comparative pricing that is not genuine. Learn more about this in our detailed guide on avoiding misleading or deceptive practices.
Predatory Pricing
It’s not illegal to sell products for below cost price. However, if the objective is to eliminate or damage a competitor, then the practice becomes predatory pricing.
This type of anti-competitive pricing is against the law, as it can lead to fewer choices for consumers and a less competitive market. In 2025, the ACCC continues to monitor such practices closely to ensure a level playing field. For a broader discussion on anti-competitive behaviour, see our article on what laws businesses have to follow.
Price Fixing
Another form of anti-competitive pricing behaviour is price fixing. It’s illegal for competitors to agree on setting prices – even a mere verbal understanding between firms can breach the law.
Multiple Pricing
We all occasionally slip up – it’s part of learning and growing as a business. However, you must also accept the consequences.
If you advertise more than one price for a product – even if it happens by error – you are generally required to honour the lower price. Alternatively, you should stop selling the product until the mistake is corrected.
Digital Pricing Considerations
As we move further into 2025, digital platforms are playing an increasingly significant role in pricing strategies. Many businesses now use dynamic pricing tools and online comparison sites, making transparency more critical than ever. Adhering to the latest ACCC guidelines when updating prices on your website or digital store is essential to avoid any misleading representations. For further guidance on maintaining compliance online, our article on what laws businesses have to follow provides valuable insights.
What to Take Away…
There are several regulations around pricing that you need to be aware of to ensure your business stays compliant. Whether you are a reseller or a supplier, it is crucial to avoid engaging in misleading or anti-competitive practices such as predatory pricing or price fixing.
If you are a reseller, be vigilant that your advertising is honest and transparent. If you are a supplier, ensure that you do not impose an RRP on your resellers in a way that could be seen as controlling market prices. Staying informed about the latest pricing regulations and enforcement trends is key to protecting your business interests.
If you’re unsure about the 2025 regulations that impact your prices, feel free to get in touch with us at Sprintlaw. Our team of experienced lawyers is ready to advise you on your options, ensuring that your pricing strategies are both legal and beneficial for your business.
At the end of the day, it’s better to set your prices in a way that supports your business goals while aligning with current pricing regulations. Getting caught on the wrong side of the law is a cost your business shouldn’t have to pay!
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