Skip to content

The Rulebook for Using Was/Now Pricing in Advertising

When marketing your business, advertising is an integral limb. It’s a commonly accepted and legitimate way to attract customers, provided you don’t stray outside the bounds of the law. Specific rules apply to different types of advertising. In this article, we’ll discuss was/now pricing, the rules and some familiar brands caught foul with their pricing.

The Australian Consumer Law (part of the Competition and Consumer Act 2010 (Cth)) prohibits corporations, in trade and commerce, making false or misleading statements concerning the existence of price reductions. In simple terms, the Australian Consumer Law (ACL) prohibits businesses from using ‘was/now’, or strikethrough advertising when the business rarely sold products at the ‘was’ or ‘original’ higher price. The policy behind this is to prevent businesses from tricking consumers into believing real savings exist where only phantoms lie.

Misleading ‘was/now’ pricing

You might be familiar with stores whose products are always on sale. These stores may be using misleading ‘was/now’ advertising if the store never sells its products for the higher ‘was’ price. For example, statements used on advertising such as ‘was $200, now $120’ or ‘$60/$40’ mislead if the products were never sold at the full $200 or $60 price tag. Advertising can still be misleading if the products are sometimes sold at the higher ‘was’ price.

Dodgy Jewellers, Sneaky Snooze

It seems some of Australia’s mass market jewellers are particularly fond of this kind of misleading and deceptive conduct. Both Zamels and Prouds were found to use misleading ‘was/now’ pricing.

Continue reading this article below the form
Loading form

Zamels 

Zamels used strikethrough and ‘was/now’ advertising in a number of sale catalogues. This misled consumers into thinking they would ‘save’ by buying during the sale period. However, this was not the case. Zamels had an aggressive discounting policy which meant that their customers rarely paid full price outside sale periods.

Prouds 

Prouds did not receive much love from the Australian Competition and Consumer Commission following its Summer of Love catalogue in February 2006, and its Love You Mum sale catalogue in May 2006. The ‘was/now’ pricing used in these catalogues was found to breach ‘was/now’ pricing provisions in the ACL’s predecessor, the Trade Practices Act.

You Snooze, You Lose

Snooze, a bedding and bed linen retailer, was found to be in breach of Trade Practice Act was/now pricing provisions. In 2008, over the course of two months, Snooze’s ‘50 Months Interest-Free’ marketing campaign displayed many products using ‘was/now pricing’. The retailer, however, never sold these products at the ‘was’ price. Snooze had to write to customers and apologise, offering them each a $50 gift voucher.

Key Takeaways

In summary, advertising sales is a legitimate way to attract customers and get rid of excess stock. However, adhere to the golden rule. Don’t use ‘was/now’ pricing or strikethrough pricing when the perceived savings are non-existent. If you never sell your products at the ‘was’ price, don’t tell consumers you’re offering a discount. You risk landing yourself in hot water if you do.

Questions? Please get in touch on 1300 544 755. Our advertising and marketing lawyers would be delighted to assist you.

Register for our free webinars

ACCC Merger Reforms: Key Takeaways for Executives and Legal Counsel

Online
Understand how the ACCC’s merger reforms impact your legal strategy. Register for our free webinar.
Register Now

Ask an Employment Lawyer: Contracts, Performance and Navigating Dismissals

Online
Ask an employment lawyer your contract, performance and dismissal questions in our free webinar. Register today.
Register Now

Stop Chasing Unpaid Invoices: Payment Terms That Actually Work

Online
Stop chasing late payments with stronger terms and protections. Register for our free webinar.
Register Now

Managing Psychosocial Risks: Employer and Legal Counsel Responsibilities

Online
Protect your business by managing workplace psychosocial risks. Register for our free webinar.
Register Now
See more webinars >
Chloe Sevil

Chloe Sevil

Read all articles by Chloe

About LegalVision

LegalVision is an innovative commercial law firm that provides businesses with affordable, unlimited and ongoing legal assistance through our membership. We operate in Australia, the United Kingdom and New Zealand.

Learn more

We’re an award-winning law firm

  • Award

    2025 Future of Legal Services Innovation Finalist - Legal Innovation Awards

  • Award

    2025 Employer of Choice - Australasian Lawyer

  • Award

    2024 Law Company of the Year Finalist - The Lawyer Awards

  • Award

    2024 Law Firm of the Year Finalist - Modern Law Private Client Awards

  • Award

    2022 Law Firm of the Year - Australasian Law Awards