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Prices, scanners, and store signs

Prices

The government does not set prices. As a business owner, you are free to set your own prices.

Recommended retail price

A retail price may be "recommended" by the manufacturer or distributor of a product. However, businesses are not legally required to sell a product at the "Recommended Retail Price".

Price tags

It is in your best interests to price goods accurately to avoid disputes and keep your customer’s goodwill and custom.

In legal terms, a price tag invites customers to make an offer to buy the product at or around the price shown.

You do not have to sell at that price. The customer can buy the product at the correct price or go elsewhere.

However, if you intentionally mark goods down at prices lower than you are prepared to sell, you can be accused of "bait advertising", which is a breach of the Fair Trading Act.

Price scanners

The Australian Retailers' Association and the Australian Competition and Consumer Commission developed a code of practice for computerised checkout systems in supermarkets.

This is a voluntary code and supermarket owners can decide whether to adopt it.

At present, no code exists for non-supermarket retail outlets. However, you should ensure shelf and scanner prices match. If you are aware of discrepancies and do not correct them, you could face action under the Fair Trading Act.

Signs in your store

Under the Trade Practices Act and Fair Trading Act, certain store signs relating to refund practices are illegal.

Here are some examples of illegal signs:

  • "No refunds"
  • "No refunds on sale items"
  • "No exchanges"

In some cases, your customers may be legally entitled to a full or part refund. To indicate otherwise is misleading and therefore illegal and you may be prosecuted and fined.

More appropriate signs would be:

  • "Please choose carefully. No refund will be made if you change your mind after purchase."
  • "Refunds or exchanges will be made if the product purchased is defective."

Advertisements, sales promotions and dockets stating that you do not give refunds may also be illegal, unless they are qualified in some way.

You should also ensure that any signs placed in workshops, service departments or on invoices do not make statements such as these:

  • "Repairs carried out at your own risk."
  • "All care but no responsibility taken."
  • "No responsibility for loss or damage."

As you are the person holding your customers' goods, you may be liable if they are lost or damaged while in your possession.

A more appropriate sign might be:

  • "We guarantee all our services for materials and workmanship."

Remember, any signs you display must not be misleading and must not misrepresent customers' refund or other rights that may be available to them under the law.