Sometimes consumers may encounter misleading or fraudulent sales tactics designed to pressure them into buying a product or service they don’t want or need. Under the Consumer Protection Act 1999, this type of behaviour is considered an unfair trade practice, and businesses that engage in it can face serious penalties, including fines and even imprisonment. Continue reading to learn how incorrect pricing and misleading information can occur, and what your rights are in stores and online.

If You’re Shopping in a Physical Store

Your rights depend on whether you have paid for the item.

Before You Buy

If you notice that an item is labeled with an incorrect price or has a misleading description (for example, headphones labeled “waterproof” when they are not), you generally cannot require the store to honour the lower price or give a discount. This is because pricing mistakes can be accidental, and proving that the mislabeling was intentional and fraudulent is difficult.

However, you may still ask the store to honour the advertised price, and some businesses may do so as a goodwill gesture.

After You Buy

If you discover after purchase that the price tag was lower than market value, you are not required to return the product or refund the difference, even if the seller realizes they undercharged you.

If you negotiated a significantly reduced price and the seller later claims it was unfair, they may attempt legal action. To protect yourself, keep any evidence that shows the seller agreed to the lower price, such as:

• a revised invoice,

• emails or text messages, or

• marketing materials showing the sale price.
  

If you were charged more than the advertised price, you should request a refund for the difference. Provide the seller with a copy of your invoice along with any ads or marketing materials showing the correct price.

If You’re Shopping Online

Your rights depend on whether you have entered into a sales contract, which usually happens once you pay and the seller accepts the order.

Before You Complete the Purchase

Always review the retailer’s terms and conditions, which appear before you enter your payment details. These terms outline your rights if something goes wrong. If anything is unclear or concerning, contact Consumer Affairs for guidance before completing the purchase.

After You Pay

If you discover the item was listed at an incorrectly low price, you are not required to return the item or refund the difference. Additionally, once an online seller has shipped the product, they generally cannot cancel the contract because of a pricing mistake.

If the seller has not shipped the item, they can cancel the order only if they can prove:

• the incorrect price was a genuine mistake, and

• any reasonable consumer would have recognized it as an obvious error (e.g., a high-value item priced at $1).
  

If You Were Overcharged

If the advertised price was lower than what you paid, request a refund for the difference. Provide:

• your invoice, and

• screenshots or marketing materials showing the advertised price.
  

If You Have Not Yet Paid

If no sales contract has been formed and the seller notices a pricing error, they may adjust the price before completing the sale.