Black Friday campaigns: How can brands stay compliant?

As brands begin launching their Black Friday campaigns for 2025, the race for clicks could again collide with the law. Given the potential for hefty fines, it may prove a costly lesson for some brands of how clever sales tactics can turn into a compliance problem, with significant legal and reputational consequences that long outlast the promotion.

During its 2024 sweep of Black Friday promotions, the Australian Competition and Consumer Commission (ACCC) uncovered "sitewide" discount claims that excluded many items, "was/now" pricing that lacked genuine prior sale history, and "up to X% off" claims that applied to only a handful of products. 

Misleading claims like "40% off sitewide" might generate clicks, but how many customers will purchase if this claim does not apply across all products or if there are important exclusions that have not been disclosed? Are customers likely to trust and be attracted to that brand’s future sales? 

The 2024 sweep was a clear signal that misleading pricing practices remain a focus, particularly during major retail events like Black Friday and Cyber Monday. We expect the ACCC to go a step further this year as it continues to see consumer and fair trading concerns in the retail sector, particularly misleading pricing practices, which is one of their key compliance and enforcement priorities for 2025-26. 

For brands, the lesson is simple: legal compliance aligns closely with effective marketing practice. A clear and accurate offer builds confidence and conversion, while complicated disclaimers and vague claims can erode trust and deter customers before they reach checkout.

How can brands avoid misleading pricing claims?

To avoid scrutiny from the ACCC, brands should consider taking the following measures before launching a campaign:

• identify genuine discount opportunities: Focus messaging on products that can truly be discounted and ensure the reduced margins remain viable, particularly when other offers, such as free shipping, run concurrently. If a headline percentage has been committed to, the underlying discount must reflect that promise
• be precise with "sitewide" or "storewide" claims: Only use these terms if the promotion applies to all products in-store and online. If certain products are excluded, the exclusions must be clearly stated to avoid misleading customers
• disclose all mandatory costs: Any fees or charges required to access a product or service should be clearly visible upfront. Webjet was recently fined $9 million for misleading airfares as the company did not adequately disclose the additional compulsory fees that would apply in its ads
• maintain honest pricing history: Do not artificially inflate prices immediately before the sales period to create greater discounts. Retailers such as Kogan have been caught out by this tactic before as the ACCC monitors historical pricing. There needs to be genuine history of products being sold at the higher price
• test campaigns for clarity: Test the campaign on how they read to an audience that is less familiar with the brand. If an offer can be easily misunderstood or misinterpreted, simplify or clarify the messaging
• refunds and returns must reflect consumer law: Policies cannot limit mandatory consumer guarantees or misrepresent rights to repair, refund or replacement. Earlier this year, the ACCC reviewed 2,000 Australian retail websites and identified return policies and terms that breached the Australian Consumer Law. Misleading practices included blanket 'no refund' conditions on sales or specialised items, time limits for returning faulty products, and statements that remedies for faulty goods can only be claimed through manufacturer warranties.

Penalties for non-compliance

Retailers found to have made false or misleading claims about their Black Friday sales may receive infringement notices from the ACCC seeking penalties. Last year, Michael Hill, MyHouse and Hairhouse Online were each fined close to $20,000. Although these penalties are at the lower end of the scale, the regulator has the power to enforce maximum penalties equal to the greater of $50 million, three times the value derived from the breach, or, if that value cannot be determined, 30% of the company’s turnover during the period of the misconduct.

Black Friday remains one of the biggest opportunities on the retail calendar, but the rush to compete should not come at the expense of clarity or honesty. With shoppers increasingly price-conscious and alert to misleading claims, transparency has become a fundamental part of good retail practice. Regulators and consumers are watching closely, and any false claims are likely not worth the risk.

If you have any questions about this article or need assistance with reviewing your promotional campaigns to ensure they are compliant, please contact us here.

Disclaimer
The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.

Published by:

Emily Booth

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