Ever wondered why the same product can cost different amounts depending on who’s buying, when, or where? That’s price discrimination in action—a strategy businesses use to maximise profits by charging different prices to different consumers for the same good or service. In 2025, with digital sales and data-driven marketing reaching new heights in Australia, price discrimination has become both more sophisticated and more controversial.
What Is Price Discrimination? Real-World Aussie Examples
Price discrimination isn’t just a textbook term. It’s a daily reality for Australians. In essence, it’s when a seller charges different people different prices for the same product or service, not based on cost differences but on willingness to pay.
- Airfares: Booking a Qantas flight on a Tuesday morning versus Saturday night? The price could be hundreds of dollars apart, thanks to algorithms that analyse demand and booking behaviour.
- Movie Tickets: Seniors, students, and kids often pay less than adults for the same cinema seat.
- Online Shopping: Dynamic pricing is rampant, with retailers adjusting prices based on your browsing history, location, or even device type.
In 2025, the rise of data analytics means businesses can segment customers more precisely than ever—sometimes down to the individual level.
The Law: What’s Legal (and What’s Not) in 2025?
Australia’s consumer laws, overseen by the ACCC, don’t outright ban price discrimination. However, there are strict rules to prevent anti-competitive or discriminatory behaviour that harms consumers or other businesses.
- Competition and Consumer Act 2010: It’s illegal for major suppliers to engage in price discrimination that lessens competition or disadvantages small businesses (think big suppliers selling to chain stores at much lower prices than to independents).
- Personalised Pricing Disclosure: In 2025, new guidelines require online retailers to disclose if prices are tailored based on user data. This transparency push aims to reduce consumer confusion and build trust in digital marketplaces.
- Anti-Discrimination Laws: Price differences based on protected attributes (race, gender, disability) remain strictly prohibited.
The ACCC has ramped up investigations into algorithmic pricing and ‘dark patterns’—sneaky tactics that trick consumers into paying more. Expect more enforcement actions and higher penalties this year as the regulator focuses on digital fairness.
Does Price Discrimination Help or Hurt You?
The answer depends on your perspective—and sometimes on your timing.
- Winners: Price discrimination can open doors for groups who might otherwise be priced out, like students, pensioners, or regional Australians (think discounted movie tickets or off-peak travel).
- Losers: Tech-savvy businesses can squeeze more from those willing (or able) to pay extra, such as last-minute bookers or customers in affluent suburbs. Some consumers pay more simply because they’re less informed or less able to shop around.
- Market Impact: When used fairly, price discrimination can increase access and keep some prices lower. When abused, it can erode trust and worsen inequality.
In 2025, as digital platforms collect more data, concerns grow about ‘creeping’ price discrimination—where prices rise not just based on demand, but on what businesses know about your habits, income, or location.
How to Spot (and Outsmart) Price Discrimination
- Clear your cookies or browse incognito when booking travel online.
- Compare prices across devices and accounts.
- Ask for concessions—many service providers offer discounts if you ask or mention competitor deals.
- Watch for new 2025 consumer rights disclosures on personalisation in pricing.
Staying alert and informed is your best defence. As pricing gets smarter, so can you.
