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The Law About “Valued At” Pricing

The Law About “Valued At” Pricing

Valued At Pricing

“Valued At” pricing is something you will see a lot, especially online.  It often looks something like this:

“Purchase now for $97 (valued at $597):

“Early Bird Price $97 (Value $497)”

“Buy now $450 (Value $3500)”

I’ll bet you’ve seen this before.  You might even have done it for your own business.

Two Price Comparison Pricing

This practice is called ‘Value Pricing’, ‘Valued At Pricing’ or ‘Two Price Comparison Pricing.’

But even if you see it done all the time, be careful about stating that your product or service is “valued at $xxx” without actually having sold that item or service at that price.

A Value Pricing description is considered misleading and a breach of Australian Consumer Law if you cannot show that you have sold that item at the stated value price at a prior time.

If you have previously sold your product or service at the higher price, then great – you have proven the value by showing that you have sold the service at that value price.

But if you haven’t sold it at the stated value price, it is only your opinion of the value and therefore misleading to the consumer.

To make sure you’re on the right side of the law when it comes to Value Pricing, review this short video:

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For more information about the do’s and don’ts of Value Pricing, visit this site:  Displaying Prices

Are You At Risk?

Pricing can be tricky.  If you need to discuss your legal obligations around pricing or have questions, please email me or book a consultation.

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