Navigating Discount Pricing Under the Australian Consumer Law: A Guide for Pharmacies

The Australian Competition and Consumer Commission (ACCC) has declared a crackdown on misleading pricing and discounting practices in the retail sector as one of its enforcement and compliance priorities for 2025/2026. It is a timely reminder for pharmacies to ensure their pricing and discount strategies comply with the Australian Consumer Law (ACL), as breaches can result in hefty penalties and cause lasting reputational damage. 

Understanding the ACL  

It is fairly common knowledge that under the ACL, businesses must not engage in conduct that is misleading or deceptive. This extends to making false or misleading representations about the price of goods or services including:  

• False ‘Was/Now’ Pricing: advertising a product as discounted from a previous price when it was not genuinely offered at that higher price for a reasonable duration, or at all. 

• Misleading ‘Save’ Claims: suggesting savings off a recommended retail price (RRP) when the product was never sold at that RRP.  

• ‘Drip Pricing’: advertising a headline price that does not include additional fees or charges that consumers must pay.  

Consequences of Non-Compliance 

Failing to comply with the ACL can attract steep penalties. Companies risk penalties of up to $50 million, three times the value of any benefit gained from a breach, or 30% of their adjusted turnover during the breach period, whichever is highest. Individuals are also exposed to significant penalties, with fines reaching up to $2.5 million for some breaches.1 

Beyond the financial consequences, non-compliance with the ACL can severely impact consumer trust and damage a business’ reputation. With consumer advocacy groups like CHOICE calling out misleading pricing practices and actively naming and shaming pharmacies that are engaging in these practices,2 businesses are at risk of not only regulatory action, but also increased public scrutiny and reputational damage. 

Compliance Strategies for Pharmacies 

To ensure compliance with the ACL, pharmacy owners should consider the following strategies: 

• Review Pricing Policies: regularly audit pricing strategies to ensure that any ‘was/now’ pricing reflects genuine previous prices and that any RRPs used are accurate and substantiated.  

• Transparent Advertising: ensure that all promotional material reflects accurate pricing, including any relevant terms or exclusions that apply. 

• Staff Training: educate staff on the requirements of the ACL, particularly around price displays and consumer rights. 

• Seek Legal Advice: consult with legal professionals to review promotional strategies and materials to ensure they align with legal obligations under the ACL. 

How We Can Assist 

Our firm specialises in helping pharmacies navigate the complexities of the ACL. We offer: 

• Compliance Audits: assessing current pricing and promotional practices to identify potential risks. 

• Policy Development: assisting in creating clear, compliant pricing and advertising policies. 

• Training Programs: providing staff training on ACL requirements and best practices.  

• Legal Advice: offering guidance on specific promotions, materials or pricing strategies to ensure compliance. 

For clear, practical legal support on pricing compliance and broader pharmacy regulations, contact our team today. 

This article was written by Marwan Kojok, Partner and Mariah Jammal, Senior Associate.