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Multiple pricing

price tag and magnifying glassMultiple pricing occurs when a supplier displays more than one price for the same item or service.

If a supplier displays the same item with more than one price then they must sell it for the lowest displayed price or withdraw the item until the price is corrected.

A price published in a catalogue or advertisement is a ‘displayed price’. If mistakes in catalogues or advertisements have occurred, they can be fixed by publishing a retraction in a publication with a similar circulation to the original advertisement.

Component pricing

A supplier must not promote or state a price that is only part of the cost, unless also prominently advertising the single (total) price.

If services are supplied under a contract that allows periodic payments then there is no requirement to display a single price as prominently as the component prices.

In addition, a single price does not usually have to include postage, for example postage, unless the supplier is aware of a minimum charge that must be paid.

The single price must be:

  • clear at the time of the sale; and
  • as prominent as the most prominent component of the price.

The single price is the total of all measurable costs and includes:

  • any charge payable; and
  • the amount of any tax, duty, fee, levy or charges (for example, GST).

See here for more on component pricing