Price-fixing laws and advertising regulations

When setting your prices and advertising your products and services, you must comply with the law.

Price-fixing laws

Price fixing occurs where 2 or more competitors (formally or informally) agree on setting a price. Under the Competition and Consumer Act 2010, price fixing is illegal in Australia.

The Australian Competition and Consumer Commission (ACCC) administers the Act. Price fixing is a complex area and significant penalties apply, so ask your solicitor to explain your obligations under the Act. You must understand how the Competition and Consumer Act 2010 applies to your business.

Advertising regulations

It is illegal to mislead the public when you advertise products and services. You cannot rely on small print and disclaimers as an excuse for misleading or deceptive conduct.

If your advertising creates a misleading overall impression among its audience about (for example) the price, value or quality of products and services, it is likely to break the law. The Office of Fair Trading (OFT) provides information on legal sales practices including pricing guidelines to ensure that your pricing is not misleading.

OFT has a range of enforcement options available when they consider a business to be breaking the law. You must understand your obligations and how you can avoid unfair business practices.

Learn more about advertising regulations.

Predatory pricing

Predatory pricing occurs when a business with a large market share intentionally reduces prices to eliminate or damage smaller competitors. Predatory pricing is anti-competitive. Reports can be made to the Australian Competition & Consumer Commission (ACCC).

Also consider...

• The Australian Consumer Law applies under the Competition and Consumer Act 2010 to protect consumers and ensure fair trading across Australia. The avoiding unfair business practices guide helps you to understand your responsibilities under the law.
• Learn about public relations.