AustraliaA company is using drip pricing - showing a low price then adding mandatory fees at checkout. Is this legal?
No, drip pricing is illegal in Australia under the Australian Consumer Law because it misleads consumers about the total price they must pay.
What the Law Says
The Australian Consumer Law (ACL) prohibits businesses from engaging in misleading or deceptive conduct when advertising or selling goods and services — including how prices are presented to consumers.
Drip pricing occurs when a business advertises a low headline price but adds mandatory fees (e.g., booking, processing, or service fees) later in the purchase process — typically at checkout. This practice breaches section 18 of the ACL, which bans misleading or deceptive conduct in trade or commerce.
The ACL requires that the total price payable — including all mandatory charges — be prominently displayed upfront whenever a component of the price is shown. This ensures consumers can make informed decisions based on the full cost.
The ACCC has taken enforcement action against multiple companies for drip pricing, confirming that omitting mandatory fees from the initial price representation is unlawful — even if the fees are disclosed later.
Statutory TextA person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.
— Competition and Consumer Act 2010 (Cth), Sch 2 — Australian Consumer Law, s. 18
Statutory TextWhere a person displays a price for goods or services, the price displayed must include any charge that the person knows or ought to know will be imposed on the consumer as a condition of supply.
— Competition and Consumer Act 2010 (Cth), Sch 2 — Australian Consumer Law, s. 53
What to Do
Display the total minimum price — including all mandatory fees — clearly and prominently alongside the initial price.
Avoid separating mandatory charges (e.g., booking, admin, or service fees) from the base price in advertising or online listings.
Review all customer-facing price representations — websites, apps, brochures, and call centre scripts — to ensure compliance.
Train staff and marketing teams on ACL pricing requirements and update internal compliance policies.
If uncertain, seek legal advice or consult the ACCC’s ‘Pricing practices’ guidance.
Sources
Same Question, Other Jurisdictions
Canada
European Union
US FederalNot legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.