Was/Now Pricing Rules Under Australian Law

Discounts can be a great way to bring customers through the door, clear stock, and stay competitive - especially when customers are watching prices closely.

But if you’re using was now pricing (for example, “Was $199, Now $99”), it’s important to remember that discount advertising isn’t just a marketing decision. It’s also a compliance issue.

In Australia, the Australian Consumer Law (ACL) sets clear rules about misleading or deceptive conduct and false or misleading representations. If your “was” price isn’t genuine, or the way you present the discount creates the wrong impression, your promotion can land you in hot water with regulators - and also damage customer trust.

In this guide, we’ll walk you through what was now pricing is, where small businesses commonly get it wrong, and a practical checklist you can use to advertise discounts confidently and compliantly.

What Is “Was Now Pricing” (And Why Does It Matter)?

Was now pricing is a pricing strategy where you advertise:

a previous price (the “was” price), and
a reduced current price (the “now” price).

It’s powerful because it communicates value quickly. Customers can see:

the size of the discount,
the urgency (“it’s on sale now”), and
the implied savings compared to what the item “normally” costs.

The legal risk is that was now pricing can easily create a misleading impression if the “was” price wasn’t real, wasn’t in place in a genuine way, or wasn’t the actual price customers would typically have paid.

Because the ACL is focused on how an ordinary consumer is likely to understand your advertising, it’s not enough that you personally “didn’t mean to mislead”. The question is whether the overall impression is accurate and fair.

How Australian Consumer Law Applies To Discount Advertising

When you advertise a discount, you’re making a representation to consumers about price and value.

Under the ACL, businesses must not engage in misleading or deceptive conduct. You also must not make false or misleading representations (including about price).

That means your pricing claims need to be supportable. If you say “Was $120”, you should be able to show that:

$120 was a genuine previous selling price (not a “made up” reference price), and
it was offered in good faith as a real price (not just briefly to justify a “sale”), and
the product being advertised at the “now” price is the same product that was sold at the “was” price (same model, same specs, same pack size, etc.).

Discount advertising issues often show up alongside broader compliance problems, like unclear refund messaging or incorrect warranty language. If you’re reviewing your sales and promotions generally, it can help to also revisit how you describe guarantees and warranties, including common misconceptions around time-based warranties (for example, the “2-year warranty” idea) in Australian Consumer Law.

Why Intent Isn’t The Main Issue

A common misconception is: “But I wasn’t trying to trick anyone.”

Under the ACL, the focus is the overall impression the promotion creates. Even honest mistakes can cause problems if a reasonable customer would likely be misled.

This is why it’s worth having a process for approving promotions, documenting your pricing history, and training staff on how to describe discounts accurately.

The Biggest “Was Now Pricing” Mistakes Small Businesses Make

Most compliance issues we see with was now pricing come down to a few repeat problems. Here’s what to watch for.

1. The “Was” Price Was Never Really The Price

This is the most obvious risk: advertising a higher “was” price that you didn’t genuinely charge.

Sometimes this happens intentionally (which is high risk), but often it happens because someone uses:

an RRP without clarifying it’s an RRP,
a competitor’s price, or
an internal “target” price that was never used publicly.

If a customer couldn’t realistically have bought the product from you at the “was” price, you’re at risk of a misleading price representation.

2. The “Was” Price Was Only Used Very Briefly

Even if you did technically list the product at the higher price, it may still be problematic if the price was only in place for a very short time, and the “sale” price is effectively the real price.

For example:

Listing an item at $200 for a day
Then advertising “Was $200, Now $120” for the next month

This can create an impression of a significant saving compared to the “usual” price, when in practice the “usual” price is $120.

3. The Discount Looks Bigger Because Important Details Are Hidden

Even if your numbers are technically correct, the way you present them matters.

Problems can arise if you:

make the “now” price prominent but hide key conditions in fine print,
apply exclusions that aren’t clear (e.g. “selected items” with no clear list), or
advertise storewide discounts that aren’t really storewide.

A good rule of thumb: if a condition would affect a customer’s decision to buy, it should be clearly disclosed upfront - not buried.

4. The Product Changed But The “Was” Price Didn’t

Was now pricing should compare like with like.

If you change the product (even slightly), your reference price may no longer be valid. Examples include:

a smaller pack size,
a different model year,
a different inclusion bundle, or
a refurbished item compared to new stock.

In these situations, you may need to reframe the promotion so the comparison is accurate, or clearly explain what the “was” price refers to.

What Counts As A “Genuine” Previous Price?

One of the most practical questions for was now pricing is: how do you know if your “was” price is genuine enough to use as a reference price?

There isn’t a single universal number of days that applies to every business or product. In practice, regulators look at the overall context - including whether the “was” price was a real price that customers had a genuine opportunity to buy at, and whether your advertising creates an accurate overall impression.

When assessing whether a “was” price is genuine, you should consider:

How long the product was offered at the “was” price
How often it sold at that price (even a small number of genuine sales can help, depending on the context)
Where it was offered (online, in-store, both)
Whether the “was” price was the most recent price, or whether you’ve had other pricing in between
Whether the product is seasonal (pricing patterns may be expected to change across a season)

For example, if you run an eCommerce store and you’re constantly testing prices, you’ll want to be especially careful that your “was” price isn’t just a short-lived test price that inflates the appearance of the discount.

Practical Tip: Keep A “Pricing Evidence” Folder

If you’re going to rely on was now pricing regularly, it’s worth keeping simple records to show your pricing history. This could include:

POS reports or sales records
website screenshots (with dates)
catalogues or promotional material
pricing spreadsheets with dates and notes

This is helpful for two reasons:

it keeps your internal team consistent, and
if your advertising is ever questioned, you’re not scrambling to reconstruct what happened.

A Compliance Checklist For “Was Now Pricing” Promotions

If you want a practical process you can reuse, here’s a simple checklist to run through before publishing a was now pricing promotion.

1. Confirm The “Was” Price Is Accurate

Was the product actually offered at the “was” price?
Was it offered to the public (not just internally)?
Do you have evidence of that price (POS history, website logs, dated catalogue, etc.)?

2. Confirm The “Was” Price Was Used In A Genuine Way

Was it more than a brief or token listing?
Does using it as a reference price create a fair overall impression about the usual or recent selling price?

3. Make Sure You’re Comparing The Same Product

Same model/version?
Same pack size/weight/volume?
Same inclusions (bundles, add-ons, warranties, subscriptions)?

4. Ensure The Promotion’s Conditions Are Clear

If it’s “selected items”, can customers easily see which items are included?
If it’s “online only”, does the ad clearly say that?
Are start and end dates clear?
Are there meaningful exclusions that should be disclosed upfront?

5. Check That Your Checkout Price Matches Your Advertising

One of the quickest ways to trigger complaints is where the headline “now” price doesn’t actually apply at checkout due to:

automatic add-ons,
bundling rules,
membership requirements, or
shipping or service fees that weren’t properly disclosed.

If you’re selling online, your customer-facing terms can also help reduce disputes about how promotions work, especially where discounts interact with returns, exchanges, and refund processes. Many businesses address this through clear Website Terms and Conditions (and ensuring these match what your marketing team is actually advertising).

How To Use “Was Now Pricing” Across Different Sales Channels

Was now pricing often appears across multiple platforms - your website, social media, marketplaces, email marketing, and in-store signage. The ACL applies across the board, but each channel has its own practical traps.

Online Stores And eCommerce

Online, customers can take screenshots and compare prices quickly. That means consistency matters.

Make sure:

product pages show the same was now pricing as your ads,
sale start and end dates are controlled (so old sale banners don’t linger), and
discount codes don’t create a mismatch between advertised “now” price and what customers actually pay.

If your online store collects customer data (for example, mailing list signups or marketing emails), you’ll also want your data handling to be compliant and transparent. This is commonly covered through a Privacy Policy that matches what you actually do with customer information.

In-Store Signage

In-store signage often relies on quick impressions. That’s useful for marketing, but risky if the sign is too broad or ambiguous.

For example:

“Everything 50% off” (but excludes new arrivals)
“Was $89, Now $39” (but only for one colour/size, not disclosed)

Your signage should be accurate, clear, and not likely to mislead at a glance. If there are meaningful exclusions, make sure they’re visible and readable.

Email Marketing And SMS Promotions

With email and SMS, keep your discount messaging consistent and avoid over-claiming.

For example, if the “was” price only applied to certain SKUs, don’t phrase it as if the discount applies to your whole range.

Also remember: promotional communications can trigger other compliance obligations (for example, spam and consent rules), so it’s worth treating your marketing workflow as a system - not just a one-off campaign.

What Legal Documents Help Support Compliant Promotions?

Was now pricing is primarily a consumer law issue, but your broader legal setup can make discounting smoother and reduce disputes when customers have questions.

Depending on how you sell, these documents are often useful:

Website Terms and Conditions: sets the rules for online purchasing, promotions, discount codes, and how errors are handled. Many online businesses use Website Terms and Conditions to clearly explain how promotions work.
Privacy Policy: explains how you collect and use customer personal information, which is especially relevant if you run promotional mailing lists or loyalty programs. A Privacy Policy should reflect your actual marketing practices.
Customer-facing terms (for services): if you’re not selling products but you’re offering discounted services (like “Was $500, Now $350”), a written customer agreement can help clarify what’s included.
Internal policies for staff: if you have a team, a simple internal procedure for promotions (including approval steps and record keeping) can reduce mistakes.

Not every small business needs every document on day one. But as soon as you’re running regular promotions, scaling your marketing, or training staff to sell, it’s worth making sure your paperwork matches the way you actually operate.

Key Takeaways

Was now pricing is a common and effective discount strategy, but it can create legal risk if your “was” price isn’t genuine or the promotion is unclear.
Under the Australian Consumer Law, your advertising must not be misleading or deceptive, and your price representations need to be accurate and supportable.
A “was” price should generally be a real previous selling price that customers had a genuine opportunity to buy at, and using it should create a fair overall impression (rather than relying on a token or inflated reference price).
Clear disclosure matters: if there are exclusions, limits, or conditions, they should be easy for customers to see and understand upfront.
Keeping simple records of your pricing history helps you stay consistent internally and respond quickly if your advertising is questioned.
Clear customer-facing legal documents (like website terms and a privacy policy) can reduce disputes when promotions interact with refunds, returns, and online checkout.

If you’d like help reviewing your promotions, website terms, or overall Australian Consumer Law compliance, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.

Was/Now Pricing: Compliant Discount Advertising Under Australian Consumer Law