2.

Price
1. Pricing Laws in Australia
Price-fixing laws
When setting your prices and advertising your products and services, you must comply with the
law.
Price-fixing laws
Price fixing is an agreement - whether it is a casual conversation or a formal understanding -
between competitors to set agreed prices for products and services. It is illegal under
the Competition and Consumer Act 2010. The Act replaced the Trade Practices Act 1974 on 1
January 2011.
The Australian Competition and Consumer Commission (ACCC) administers the Act. Price
fixing is a complex area and significant penalties apply, so ask your solicitor to explain your
obligations under the Act.
Australian Competition & Consumer Commission
Displaying prices:
Prices displayed by a business must be clear, accurate and not misleading to consumers. You
should always display the total price of a product or service. Certain grocery retailers must also
display unit pricing on their shelf labels.
Component pricing:
When you present prices to your customers, you must state the total price of the good or service
as a single figure, which is the minimum total cost that is able to be calculated. This should
include any tax, duty, fee, levy or other additional charges (e.g. GST or airport tax). You do not
need to include optional charges or extras or delivery charges unless you are aware of a
minimum delivery charge that must be paid in which case you can chose whether to include it in
the total price or as a separate component.
If you promote a price that is only part of the total price, the total price must also be displayed at
least as prominently as the part price. This means that customers should be able to identify the
total price in the advertisement just as easily as prices for all the other aspects.
Multiple pricing:
If you display or advertise in a catalogue the same good with more than one price, you must sell
the good for the lowest displayed (or advertised) price or withdraw the goods from sale until the
price is corrected. This does not apply when the advertisements state that prices vary in different
regions, where a price is entirely hidden by another price, a unit price is shown, or a price is
displayed in an overseas currency.
Misleading advertising:
It is illegal for a business to make claims to customers about its goods or servicesincluding
claims about pricethat are incorrect or likely to create a false impression. This includes
advertisements or statements in any media (e.g. print, radio, television or online) and any claim
made by a person representing your business.
Intention is irrelevant. You may breach the law even if you thought the statement was correct
when you made it.
Two-price comparison advertising:
Businesses often make comparisons between product prices being charged and:
the company's previous pricing (including 'was/now' or 'strike through' pricing or by specifying a
particular dollar amount or percentage saving)
the 'cost' or wholesale price
the competitor's price
the recommended retail price (RRP).
Businesses that use such statements must ensure that consumers are not misled about the savings
that may be achieved.
Statements such as 'Was $150/Now $100' or '$150 Now $100' are likely to be misleading if
products have not been sold at the specified 'before' or 'strike through' prices in a reasonable
period immediately before the sale commences.
Such statements are also likely to be misleading if only a limited proportion of a product's sales
were at the higher price in the period immediately before the sale commences. The volume or
proportion of sales that may result in such statements being misleading will depend on the
circumstances of each case.
The length of the period will depend on factors such as:
The type of product or market involved
The usual frequency of price changes.
If a business has a policy or practice of discounting goods when not on sale and uses two-price
advertising in relation to sale periods, there is a significant risk that the use of two-price
advertising will involve conduct that is misleading. The business would be representing to
consumers that they will make a particular saving if they purchase the item during the sale
period, when this is not necessarily the case.
Similar considerations apply to the specification of dollar amount or percentage savings such as
60% off.
Misleading comparisons:
Comparisons between 'cost/wholesale' and 'sale' prices can be misleading if the specified
'cost/wholesale' price is greater than what the business paid for the goods. Consumers may be
more likely to purchase goods if the gap between the wholesale and retail price is perceived to be
smaller than what it actually is.
Price comparisons can also be misleading where, for example, a business uses a competitor's
price for identical goods, but that price is taken from a different market or geographical location.
Depending on individual circumstances, businesses using statements such as 'savings' or
'discounts' when comparing a sale price to the recommended retail price (RRP) may be
misrepresenting potential savings if the product has never been sold at the RRP or the RRP does
not reflect a current market price.
2. LAW of Pricing in UK
When selling to the general public, all pricing information must be clearly legible, unambiguous,
easily identifiable and inclusive of VAT and any additional taxes.
Pricing information must be given close to the product; or with distance contracts (e.g. online or
mail order sales) and advertisements, close to a picture or written description of the product. In
relation to sales by telephone, price indications must be clearly audible and linked to the subject
of the transaction.
Prices can be shown:
on goods themselves;
on a ticket or notice near to the goods; or
grouped together with other prices on a list or catalogue(s) in close proximity to the goods. If
counter catalogues are used, there should be sufficient copies for consumers to refer to.
Can price indications be in a foreign currency?
If a trader indicates that he is willing to accept foreign currency for the purchase of a product, in
addition to the required price indications in sterling he must also:
give the price in the foreign currency together with any commission to be charged;
clearly give the conversion rate together with the commission to be charged; and
indicate that these do not apply to transactions via a payment card for a non-sterling account.
What are the consequences of non-compliance?
Failure to comply with the Price Marking Order 2004 and the Consumer Protection from Unfair
Trading Regulations 2008 is a criminal offence.
Special rules
In some cases, special pricing rules must be observed.
Restaurants, pubs, and cafes which serve food have to display a price-list and tell you
whether there is a service charge, and pubs have to list the price of various drinks.
Petrol stations must show the unit price of petrol at the pump.
3. Pricing Laws in China
The Price Law of the People's Republic of China which has been adopted at the 29th Meeting of
the Standing Committee of the Eighth National People's Congress on December 29, 1997 is
promulgated now, and shall enter into force May 1, 1998.
Regulations under new Law:
The State supports and promotes fair, open and lawful market competition, maintains
normal price order and carries out administration, supervision and necessary regulation
and control over price activities.
The operators shall, in determining prices, abide by the principle of fairness, being in
conformity with law, honesty and credibility.
Production and management costs and market supply and demand situation shall be the
fundamental basis for the determination of prices by the operators.
The operators shall exert efforts to improve the administration of production and
management, reduce the cost of production and management, provide commodities and
services for the consumers at reasonable prices and gain lawful profits in market
competition.
The operators shall, in selling, procuring commodities and providing services, display
the clearly marked price in accordance with the provisions of the competent departments
of price of the government, annotate relevant information such as the name, place of
manufacture, specifications, grade, unit of price calculation and price of a commodity or
the services item and rates.
The operators shall not sell commodities with additional price besides the marked price
and shall not collect any fee not indicated.
The government may enforce government-guided prices or government-set prices when
necessary for the prices of the following commodities and services:
the prices of an extremely small number of commodities vital for the development of the
national economy and people's life.
the prices of a small number of commodities the resources of which are rare or short
the prices of commodities under natural monopoly management
the prices of essential public utilities; and
the prices of essential non-profit services.
In case of noncompliance
Any operator who violates the provision of clearly marking prices shall be ordered to make a
rectification, confiscated of the illegal gains and may be concurrently imposed a fine of less than
RMB 5,000 Yuan.
Any operator who has been ordered to suspend relevant business operations but does not suspend
the operations shall be imposed a fine of more than 100% less than three times of the relevant
business revenue or of the value of the properties transferred, concealed or destroyed.

4. Pricing Laws in Philippines
The provision on Price Tag, under R.A. 7394, requires that all consumer products sold in retail to
the public shall bear an appropriate price tag, label, or marking indicating the price of the article.
Such consumer products shall not be sold at a price higher than that stated in the price tag.
A price tag should: - Be clearly written; - State the price of the commodity per unit (piece,
package, pair, dozen, set, kilogram, meter, liter, etc.) in pesos and centavos, Philippine currency,
except when a law or regulation allows consumer products to be sold in foreign currency as in
the case of duty free shops; and - Bear no erasures or alterations of any sort. Erasures or
alterations are allowed only in price reduction sales promotion campaigns.
The following shall be stated in an express warranty: - the terms of warranty, written in clear and
readily understandable language; - the warrantors identity; - the partys identity to whom the
warranty is extended; - the products or parts covered; - the warrantors action plan in the event of
a defect, malfunction or failure to conform to the written warranty; - the directive to the
consumer to avail of the right which accrue to the warranty; - the period within which, after
notice of defect, malfunction, or failure to conform to the warranty, the warrantor will perform
any obligation under the warranty.
When a consumer product is too small or the nature of which makes it impractical to place a tag
thereon and in case of consumer services then price list is allowed. Samples or dummies of
products offered for sale on retail when displayed within the retail outlets shall also bear the
prices of products which they represent.
Cadbury Dairy Milk Chocolate price list (120g)
Country Price US dollars
Australia $
UK $1.68
China
Philippines




References:
1. http://www.business.qld.gov.au/business/running/marketing/pricing-products-services/price-
fixing-laws-regulations
2. http://www.accc.gov.au/business/pricing/displaying-prices
3. http://www.dudley.gov.uk/resident/your-council/trading-standards/price-marking-of-goods-
for-sale
4. http://www.asianlii.org/cn/legis/cen/laws/plotproc336/
5. http://dtincr.ph/faq_pricetag.php