eBay Australia Introduces New Comparative Pricing Policy – Targeting False Information

eBay Australia has today announced that from the 21st of May 2022 there will be a new comparative pricing policy in place across the eBay Australia marketplace.

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This is related to the marketing tactic that some sellers utilize where they can show potential buyers either an RRP or a historical price for an item, alongside the selling price the seller has set where eBay will then highlight the discount percentage for the buyer.

Up until now, there has been very little oversight into how genuine these prices may be from sellers, which is what the new comparative pricing policy aims to address. The new policy may result in sellers that are unable to substantiate their pricing claims or are found to be deceptive or misleading being suspended from the eBay Australia marketplace.

You can see the full policy below:

eBay Australia’s Comparative Pricing Policy

“This policy applies to listings on eBay.com.au and covers all types of comparative pricing that a seller uses to establish the value of the discount to the buyer. This includes, but is not limited to, where a seller refers to:

• The recommended retail price (RRP) of an item to demonstrate a discounted current price; or
• Their own historical or previous pricing on or off eBay compared to the current price charged (including by using ‘was/now’ pricing or ‘strike-through’ pricing, or by specifying a particular dollar amount or percentage saving).

This policy also applies in circumstances where a seller provides eBay Australia with the above information for the purposes of eBay advertising the item on discount.

Comparative pricing – seller conditions

By displaying comparative pricing on eBay, the seller understands, accepts, and agrees to the following conditions:

• The seller is solely responsible for the accuracy of the information they provide;
• The seller shall fully comply with all applicable laws, codes, and regulatory guidance, including, without limitation, the Australian Consumer Law;
• The seller confirms that all given pricing data is accurate, truthful, and current;
• To ensure that any comparative pricing representations are not false or misleading to consumers (or otherwise in contravention of the Australian Consumer Law), the seller further confirms the following:
  • In relation to the use of RRP:
    • The referenced pricing will be accurate and current throughout the entire duration of the listing;
    • RRP will only be used in cases where the product has been previously offered and sold at that RRP for a reasonable period of time; and
    • RRP will not be used for products that are only supplied by the seller;
  • In relation to the use of a previous selling price (including ‘was/now’ pricing, ‘strike-through’ pricing, or by specifying a particular dollar amount or percentage saving):
    • The item has been offered by the seller at the ‘was’ price for a reasonable period of time immediately prior to the item being advertised with ‘was/now’ pricing;
    • The item price has not increased on eBay.com.au from the date that is 10 days prior to advertising a discount on the listing (such as when creating a promotion in Seller Hub or participating in eBay promotions), although you may lower the prices at your discretion;
    • Comparisons will not be made with prices last offered more than 6 months ago (or if they are, the seller will highlight this clearly within the listing);
    • In relation to each item, the seller held a reasonable expectation that a significant number would sell at the higher price; and
• The seller will hold documentary evidence (such as receipts or detailed sales records) demonstrating that a number of items were offered and sold at the RRP or previous selling price, which shall be provided to eBay upon request within 2-3 business days.

eBay may, in appropriate circumstances and in accordance with the terms of the User Agreement suspend or terminate a seller’s account, or impose other consequences (such as removal of eBay Top Rated seller status at an account level) if you fail to provide substantiation, or if eBay or a regulatory body determines that the comparative price is false or otherwise misleading or deceptive.”