Why Online Prices Change After You Click: A Guide to Dynamic Pricing

by Chief Editor

Online shoppers encountering a low-priced item in a sponsored search result that jumps in price upon selection are likely experiencing a “multi-variation” bait-and-switch. According to marketing researchers Jessica Pallant, Adrian R. Camilleri, and Jeannie Marie Paterson, this tactic exploits the “visual superiority effect,” where consumers prioritize images over text. Such practices may constitute misleading conduct under Australian Consumer Law, with the Australian Competition and Consumer Commission (ACCC) signaling these manipulative pricing strategies as a key enforcement priority.

Why Do Online Retailers Use Bait-and-Switch Tactics?

Retailers employ multi-variation listings to capture clicks by displaying a bargain-basement price for a base-level item—often a cheap accessory—while the primary image showcases a premium product. Research by Pallant, Camilleri, and Paterson indicates that consumers process visual information faster than text. Because the brain relies on the image to set expectations, shoppers often ignore the fine-print details indicating the low price does not apply to the main item. This design choice is categorized by consumer watchdogs as a “dark pattern,” a digital interface specifically engineered to nudge users into actions they might otherwise avoid.

Why Do Online Retailers Use Bait-and-Switch Tactics?
Did you know?

The “visual superiority effect” explains why your brain tends to trust a product photo more than a price tag. When the two conflict, the human brain is hard-wired to favor the image, making you more susceptible to pricing tricks.

Is This Practice Legally Misleading?

Under Australian law, these visual tricks can be considered illegal. The Australian Competition and Consumer Commission (ACCC) has a history of litigating against companies that use prominent, misleading headline claims. A major legal precedent was set in the High Court of Australia during the case against TPG Internet, which resulted in a $2 million penalty. The court ruled that if a consumer is drawn into a “marketing web” by a dominant, misleading message, the conduct is actionable under the Trade Practices Act, even if qualifiers are present elsewhere on the page.

What New Regulations Are On the Horizon?

The Australian federal government is currently debating legislation that would explicitly prohibit “unfair trading practices.” According to the proposed framework, this would target digital tactics that “unreasonably distort” the consumer decision-making environment. This move aims to fill gaps where current laws may struggle to capture subtle, screen-based manipulation. If passed, this would give regulators stronger grounds to penalize platforms that allow sellers to use bait-and-switch pricing to pressure consumers into unintended purchases.

ACCC targets supermarket pricing and online practices | 7NEWS
Pro Tip: Protect Your Wallet

If you suspect a listing is using a bait-and-switch, take a screenshot of the search result and the price change after clicking. You can use this evidence to file a report with the ACCC, which helps regulators identify patterns of abuse across major platforms.

Frequently Asked Questions

What is a “dark pattern” in online shopping?

A dark pattern is a user interface design intentionally crafted to manipulate a user into doing something, such as buying a more expensive item or sharing personal data, that they did not intend to do.

Frequently Asked Questions

Can I get a refund if I fell for a bait-and-switch?

If you were misled by a false price claim, you should contact the retailer first. If the business refuses to resolve the issue, you can report the listing to the ACCC, as they prioritize investigating misleading pricing practices.

Why don’t shopping platforms stop this?

While many platforms have policies against misleading listings, the sheer volume of products makes enforcement difficult. However, as consumer complaints increase, platforms are facing more pressure to update their search algorithms to prevent price-image mismatches.


Have you been misled by a “bargain” price that changed at checkout? Share your experiences in the comments below or subscribe to our newsletter for more tips on how to shop safely online.

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