Interface interference · Australia

Misleading reference pricing

Misleading reference pricing is a working label for this design mechanism: A comparison or prior price creates an inaccurate or insufficiently explained impression of savings. This is editorial implementation guidance for Australian journeys, not a finding of unlawfulness. From 1 July 2027, a similar interface is relevant to ACL section 28B only if the complete consumer-connection, manipulation or unreasonable-distortion and actual-or-likely-detriment test is met. Current ACL rules require a separate assessment.

Editorial implementation guidance
Also known as
  • fake discount
  • false was price
  • reference-price anchoring
  • inaccurate struck-through price
  • unrepresentative prior price
  • arithmetically inconsistent discount
  • unclear comparison basis
Journey stages

Definition

What is this pattern?

A comparison or prior price creates an inaccurate or insufficiently explained impression of savings. This is a design and research taxonomy for learning and evidence review, not a statutory offence label or an automatic finding that an interface is unlawful.

How it works

A comparison or prior price creates an inaccurate or insufficiently explained impression of savings. A current price is evaluated against an unsupported or non-equivalent comparator, manufacturing a saving that can distort value and timing judgments.

Warning signs

  • A current price is framed against a reference or discount claim.
  • Arithmetic, comparison basis or external history is inconsistent, inaccurate or unverified.
  • The anchor plausibly affects perceived value.

Potential harms

  • The reference can create an unsupported impression of exceptional savings and rush comparison.
  • Travellers may overvalue membership because the compared offers are not meaningfully equivalent.

Learn by comparison

What does this look like?

These fictional examples make the design mechanism easier to recognise. They do not depict a real company and do not establish that an individual interface is unlawful.

Illustrative example 1 · Permanent sale uses an invented “was” price

A fictional store shows “Was $180, now $79” even though the jacket has never been offered for $180 and sells at $79 throughout the season.

Potential consumer harm: The reference can create an unsupported impression of exceptional savings and rush comparison.

Illustrative example 2 · Member discount compares with unavailable tier

A fictional booking service calls $90 a “40% member saving” by comparing it with a $150 flexible fare that is not offered for the same dates or conditions.

Potential consumer harm: Travellers may overvalue membership because the compared offers are not meaningfully equivalent.

What is a fairer alternative?

Use a truthful, representative comparison basis and explain the reference period or basis close to the claim.

Context matters

Context and boundary cases

  • A current price is framed against a reference or discount claim.
  • Arithmetic, comparison basis or external history is inconsistent, inaccurate or unverified.
  • The anchor plausibly affects perceived value.
  • Boundary to test: Accurate, representative and clearly explained reference price
  • Boundary to test: mere display of two genuinely different product prices

When a similar design can serve a legitimate purpose

  • Accurate, representative and clearly explained reference price
  • mere display of two genuinely different product prices

Operational review

What teams should review

Teams
  • Product
  • Design
  • Engineering
  • Legal
  • Compliance
  1. Do “Was $180 · now $79” and “$79” receive comparable prominence and explain their consequences before activation?
  2. Place the compared prices, billing periods and material terms on one evidence sheet; where does it support “A current price is framed against a reference or discount claim”?
  3. What neutral rendering or comprehension result would falsify the classification, particularly in light of “Accurate, representative and clearly explained reference price”?
  4. Do “$90 vs $150” and “Member $90 · public $105” receive comparable prominence and explain their consequences before activation?
  5. Place the compared prices, billing periods and material terms on one evidence sheet; where does it support “Arithmetic, comparison basis or external history is inconsistent, inaccurate or unverified”?
  6. What neutral rendering or comprehension result would falsify the classification, particularly in light of “mere display of two genuinely different product prices”?

Evidence to retain

  • Annotated pricing screenshots at each responsive breakpoint
  • The complete state sequence before, during and after the consumer decision
  • Design-system component, content, default and configuration records for the reviewed release
  • Operational records substantiating price, availability, timing and eligibility claims
  • Usability, accessibility, reversal, complaint and support evidence relevant to consumer impact
  • A dated product and legal review record identifying evidence, uncertainties and release decisions

Legal map and implementation tools

Evidence base

Sources

  1. Dark commercial patternsOrganisation for Economic Co-operation and Development · Secondary · checked 2026-09-14 · OECD Digital Economy Papers No. 336
  2. Competition and Consumer Amendment (Unfair Trading Practices) Act 2026Federal Register of Legislation · Primary · checked 2026-09-14 · C2026A00064
  3. Competition and Consumer Act 2010, including Schedule 2: Australian Consumer LawFederal Register of Legislation · Primary · checked 2026-09-14 · C2004A00109
  4. Unfair trading tricks and traps to be bannedTreasury Ministers · Primary · checked 2026-09-14
  5. Inquiry into the Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026Senate Economics Legislation Committee · Primary · checked 2026-08-09