Colourful price tags at stores trick shoppers into paying more
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If you’ve ever wandered the aisles of your local chemist and felt your eyes drawn to a sea of bright yellow, pink, and red price tags, you’re not alone.
These colourful labels are designed to catch your attention—and, as new research from consumer advocacy group CHOICE reveals, they might also be tricking you into spending more than you bargained for.
CHOICE’s latest investigation has uncovered a worrying trend among major pharmacy chains like Chemist Warehouse, Priceline, and Terry White.
Their research found that about one in three shoppers struggle to tell if these eye-catching price tags actually represent a real discount—or if they’re just clever marketing.
In some cases, products are advertised as being 'on sale' from a recommended retail price (RRP) that the store has never actually charged.
In other instances, oversized, colourful tags obscure the regular shelf price, making it hard to know if you’re really getting a deal.
According to Bea Sherwood, CHOICE’s senior campaigns and policy adviser, 'Discounts should be clear and transparent, not confusing.'
CHOICE surveyed 1,000 shoppers and found that 33 per cent had trouble figuring out whether the price tags at major chemist chains meant they were getting a genuine discount.
The confusion isn’t just limited to the big names, either.
Marketing professor Jana Bowden from Macquarie University points out that smaller, independent chemists can also use similar tactics, sometimes charging much more than their larger competitors for the same products.
'Many pharmacies prey on consumer complacency,' Bowden said.
'Bright sales tags, stickers and promotional flags trick consumers into thinking there’s a sale to be had.'
Let’s look at a real example from the research: At one Terry White store, a tube of toothpaste was advertised as 'discounted' to $6 from an RRP of $11.99.
But the typical price for that toothpaste was actually $8.99—meaning the real saving was just $2.99, not the $5.99 the tag suggested.
In fact, 70 per cent of shoppers surveyed believed they were saving double the actual amount.
Priceline, meanwhile, uses phrases like 'great value' and 'lower prices' on their tags, even when the product isn’t actually discounted.
These kinds of labels can make it even harder to know if you’re getting a bargain or just being sold the idea of one.
For many of us, especially those on a fixed income or managing health conditions, every dollar counts.
Clare Mullen from Western Australia’s Health Consumers’ Council says the practice is particularly concerning when it comes to health-related products.
'When we’re talking about health-related items, it’s just unfair that the onus is on the consumer to put in the extra effort,' she said.
It’s not just about saving a few dollars here and there—misleading price tags can make it harder for people to afford the medications and health products they need.
Australia’s consumer watchdog, the ACCC, is clear: Businesses must not mislead customers.
That means they can’t advertise a 'discount' from a price that was never actually charged or promote a product’s normal price as a special deal.
Supermarkets have faced similar scrutiny in the past, with phrases like 'while stocks last' and 'prices dropped' causing confusion.
To avoid falling for misleading price tags, compare the shelf price with those at other stores or online instead of relying on bold discount labels.
Be cautious of discounts based on the recommended retail price (RRP), as it may not reflect the actual market value.
If you're unsure whether a promotion is genuine, ask a staff member for clarification.
Keep your receipts in case you need to raise concerns with the store or the ACCC.
Always shop around, as better deals may be available outside your usual chemist.
Have you ever been confused by colourful price tags at your local chemist? Did you think you were getting a bargain, only to find out later you weren’t? Share your experiences in the comments below.
These colourful labels are designed to catch your attention—and, as new research from consumer advocacy group CHOICE reveals, they might also be tricking you into spending more than you bargained for.
CHOICE’s latest investigation has uncovered a worrying trend among major pharmacy chains like Chemist Warehouse, Priceline, and Terry White.
Their research found that about one in three shoppers struggle to tell if these eye-catching price tags actually represent a real discount—or if they’re just clever marketing.
Bright promotional tags at chemists are being misunderstood by one in three shoppers as real discounts. Credit: FangXiaNuo / Stock
In some cases, products are advertised as being 'on sale' from a recommended retail price (RRP) that the store has never actually charged.
In other instances, oversized, colourful tags obscure the regular shelf price, making it hard to know if you’re really getting a deal.
According to Bea Sherwood, CHOICE’s senior campaigns and policy adviser, 'Discounts should be clear and transparent, not confusing.'
CHOICE surveyed 1,000 shoppers and found that 33 per cent had trouble figuring out whether the price tags at major chemist chains meant they were getting a genuine discount.
The confusion isn’t just limited to the big names, either.
Marketing professor Jana Bowden from Macquarie University points out that smaller, independent chemists can also use similar tactics, sometimes charging much more than their larger competitors for the same products.
'Many pharmacies prey on consumer complacency,' Bowden said.
'Bright sales tags, stickers and promotional flags trick consumers into thinking there’s a sale to be had.'
Let’s look at a real example from the research: At one Terry White store, a tube of toothpaste was advertised as 'discounted' to $6 from an RRP of $11.99.
In fact, 70 per cent of shoppers surveyed believed they were saving double the actual amount.
Priceline, meanwhile, uses phrases like 'great value' and 'lower prices' on their tags, even when the product isn’t actually discounted.
These kinds of labels can make it even harder to know if you’re getting a bargain or just being sold the idea of one.
For many of us, especially those on a fixed income or managing health conditions, every dollar counts.
Clare Mullen from Western Australia’s Health Consumers’ Council says the practice is particularly concerning when it comes to health-related products.
It’s not just about saving a few dollars here and there—misleading price tags can make it harder for people to afford the medications and health products they need.
Australia’s consumer watchdog, the ACCC, is clear: Businesses must not mislead customers.
That means they can’t advertise a 'discount' from a price that was never actually charged or promote a product’s normal price as a special deal.
Supermarkets have faced similar scrutiny in the past, with phrases like 'while stocks last' and 'prices dropped' causing confusion.
Be cautious of discounts based on the recommended retail price (RRP), as it may not reflect the actual market value.
If you're unsure whether a promotion is genuine, ask a staff member for clarification.
Keep your receipts in case you need to raise concerns with the store or the ACCC.
Always shop around, as better deals may be available outside your usual chemist.
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