RRP vs MSRP: Fair Trading Act Pricing Rules In New Zealand

If you sell products in New Zealand (online, in-store, or both), you’ve probably seen pricing labels like “RRP”, “MSRP”, “Was/Now”, or “Compare at”. They can be great marketing tools - but they’re also a common source of legal risk when they’re used carelessly.

It’s normal to feel a bit unsure here. Pricing rules can sound technical, and when you’re busy running a business, it’s easy to copy what other brands are doing and hope for the best. The catch is that in NZ, the way you represent prices can fall under the Fair Trading Act 1986, and the consequences of getting it wrong can be costly.

This guide breaks down RRP vs MSRP in New Zealand in plain English, explains what the Fair Trading Act expects, and gives you a practical checklist to help you advertise prices with confidence.

What Do RRP And MSRP Mean In New Zealand?

Let’s start with the basics, because a lot of pricing confusion comes from people using these terms interchangeably.

What Is RRP?

RRP usually means Recommended Retail Price. It’s a suggested price that a supplier, wholesaler, or brand owner recommends retailers sell a product for.

In practice, RRP is often used as the “comparison price” next to a discounted selling price (for example, “$79.99 RRP, now $49.99”).

Here’s the key point: an RRP is not automatically a “real” market price. It’s only safe to use in advertising if it’s a genuine and meaningful reference price.

What Is MSRP?

MSRP usually means Manufacturer’s Suggested Retail Price. Conceptually, it’s similar to RRP - it’s a price recommended by the manufacturer (or brand owner).

In New Zealand, there isn’t a special legal category for MSRP. If you use “MSRP” in your advertising, regulators and customers will generally interpret it as a recommended or typical retail price used for comparison.

So, Is There A Difference Between RRP Vs MSRP In New Zealand?

For most NZ businesses, the difference is mainly commercial rather than legal:

• RRP often refers to a recommended price set by the supplier/brand for retailers.
• MSRP often signals the recommended price set by the manufacturer (which may be the brand owner anyway).

From a compliance perspective, the big issue isn’t which acronym you use - it’s whether your price representation is accurate and not misleading under the Fair Trading Act 1986.

If you’re using reference pricing a lot, it’s worth understanding how NZ regulators view recommended retail price claims, because that’s where many “discount” ads get into trouble.

When Can You Use RRP/MSRP In Advertising Without Misleading Customers?

If you’re advertising “$X RRP/MSRP”, you’re not just stating a random number - you’re making an implied claim to customers about what that price represents.

Common implied claims include:

• that the product is generally sold at (or around) that RRP/MSRP in the market;
• that the RRP/MSRP is a realistic benchmark for comparing your sale price;
• that your customer is getting a genuine saving compared to typical retail pricing.

So, when is it “safe” to use RRP/MSRP? There isn’t a one-size-fits-all rule, but good practice is to make sure:

• the RRP/MSRP is genuine (it’s actually set by the brand/manufacturer/supplier, and not invented by you);
• it’s current and relevant (not outdated, and not a price that no longer reflects the market);
• it’s a meaningful reference price (customers can realistically buy the product at that price in NZ, or it’s commonly sold for that amount).

Examples Of High-Risk RRP/MSRP Advertising

These are the kinds of scenarios that regularly lead to complaints (and can attract regulatory attention):

• Inflated RRPs: listing an RRP that is significantly higher than what the product is typically sold for in the NZ market.
• Made-up MSRP: using “MSRP” as a fancy label for a number you chose yourself, without any real basis.
• Perpetual discounts: always advertising a “sale” price and never (or rarely) selling at the higher reference price.
• Unclear comparisons: saying “RRP $199” when that RRP applies to a different model/version, bundle, or specification.

It can also become risky if your advertised prices don’t match what customers actually pay at checkout (for example, hidden fees, compulsory add-ons, or shipping that changes the “real” price). That’s why advertised pricing and checkout design should be reviewed together. If you sell online, clear Business Terms can help align expectations around price, shipping, and fees.

What Does The Fair Trading Act 1986 Require For Pricing Claims?

The Fair Trading Act 1986 (FTA) is one of the main laws regulating how you market and advertise your products in New Zealand. It applies to pricing representations across:

• websites and online stores
• social media ads and posts
• in-store signage and shelf labels
• email marketing
• quotes, promotions, and “limited time” sales

At a high level, the FTA prohibits businesses from engaging in misleading or deceptive conduct and from making false or misleading representations (including about price).

How The FTA Applies To “Was/Now” And “Save $X” Deals

When you advertise “Was $99, now $59”, you’re telling customers the product was genuinely offered at $99 for a meaningful period (or at least that $99 is a genuine reference price). If you rarely sold it at $99 - or never sold it at $99 - you could be creating a misleading price impression.

The same logic applies to:

• “Save $40”
• “50% off”
• “Compare at $X”
• “RRP $X” or “MSRP $X”

If you’re advertising a “saving”, you should be able to substantiate it. In practical terms, that means keeping records that support your claim (more on that below). It’s also worth remembering the FTA’s rules around unsubstantiated representations: if you make a claim about price, savings, or comparisons, you should have reasonable grounds for it at the time you make it (not just after someone complains).

Making Sure Your “Advertised Price” Is Actually The Price

Another common issue is advertising one price but charging another once customers reach checkout. The Fair Trading Act can apply here too, because customers rely on the advertised price when deciding to buy.

For many businesses, the safest approach is to treat advertised pricing as a “promise” - if you advertise it, your systems and staff should be set up to honour it (unless you clearly disclosed conditions upfront).

This is especially relevant if you use:

• automatic discount codes
• bundle pricing
• subscription discounts
• pricing that depends on location/shipping

If you want a deeper read on common pitfalls in NZ pricing promotions, consumer law advertised price issues are worth understanding before you launch your next big campaign.

Watch Out For “Bait” Style Promotions

If you advertise a very attractive price to pull customers in, but you don’t have reasonable stock available (or you immediately push customers toward a higher priced alternative), that can raise “bait” advertising concerns.

This isn’t just a reputation issue - it can be a compliance issue under the FTA.

It’s a good idea to pressure-test your promotion planning against the concept of bait advertising, especially if you run limited-stock campaigns or major sale events.

How Does The Consumer Guarantees Act 1993 Fit In?

The Consumer Guarantees Act 1993 (CGA) isn’t primarily about price advertising - it’s about product quality and consumer rights (like acceptable quality and remedies if something goes wrong).

But pricing and consumer guarantees often overlap in the real world. For example, if you advertise a product at a steep discount because it’s “seconds”, “clearance”, or “end of line”, you still need to be careful about:

• not overstating what the customer is getting
• not misrepresenting defects or condition
• not trying to contract out of consumer guarantees unlawfully

If your pricing strategy includes clearance, refurbished, or “factory second” stock, it can help to align your marketing with your returns and warranty approach. The concepts in warranties in NZ law are often relevant here.

Resale Pricing: Can You Set A Minimum Price For Retailers?

This is where many suppliers and brand owners get stuck: you want consistent pricing, but you also don’t want to break competition rules.

Can You Tell Retailers What Price They Must Sell At?

In many cases, trying to force a minimum resale price can create serious legal issues under NZ competition law. In particular, resale price maintenance can be prohibited under the Commerce Act 1986, and it’s an area where the way the arrangement works in practice matters a lot.

There’s a difference between:

• recommending a price (RRP/MSRP), which can be lawful if it’s genuinely a recommendation; and
• enforcing a price (for example, penalising retailers who discount, threatening supply cuts, or setting contractual minimums), which is far more likely to raise resale price maintenance concerns.

If you’re thinking about putting minimum pricing into supply arrangements, it’s worth getting advice specific to your model. The legal risk depends on how the arrangement works in practice, not just what the contract says.

This topic comes up often enough that it’s worth reading about whether minimum resale prices are allowed, particularly if you’re a wholesaler, distributor, or brand scaling into retail.

What About MAP Policies (Minimum Advertised Price)?

Some businesses use “minimum advertised price” style policies (for example, “you can sell at any price, but you can’t advertise below $X”). These approaches can still raise competition law concerns depending on how they operate and how they affect the market - and in some cases they may be treated similarly to resale price maintenance if they effectively control retail pricing.

Because these arrangements can be tricky, the safest step is usually to get advice before you roll it out - especially if you’re dealing with multiple resellers, online marketplaces, or a competitive product category.

Practical Pricing Compliance Checklist For NZ Businesses

If you want to use RRP/MSRP to drive sales while staying on the right side of NZ law, it helps to treat pricing compliance like a system (not a last-minute marketing task).

Here’s a practical checklist you can use.

1) Be Clear What Your Reference Price Actually Means

Decide what “RRP” or “MSRP” is communicating to your customer. For example:

• Is it the supplier’s recommended price?
• Is it the price the product is commonly sold for in NZ?
• Is it your own previous selling price (and if so, for how long)?

Once you know what it means, make sure it’s true. “RRP” should not be a vague marketing label.

2) Keep Evidence To Back Up Your Pricing Claims

If someone challenges your “save $X” claim, you’ll want to be able to show you had a reasonable basis for it at the time you made it.

Depending on your situation, that could include:

• supplier/manufacturer documentation showing the recommended price
• your own pricing history (for “was/now” comparisons)
• records of competitor pricing surveys (if you’re using market pricing as a reference)
• catalogues, screenshots, or dated price lists

You don’t need to overcomplicate this - but you do want a basic process so your marketing team isn’t guessing.

3) Make Sure Your Sale Price Isn’t “Always On”

One classic risk scenario is advertising a product as discounted for months (or indefinitely), where the “RRP” or “was” price is essentially meaningless.

If you want to run long campaigns, consider using pricing language that’s accurate for your situation. Sometimes it’s better to advertise a straightforward everyday price than rely on constant reference pricing.

4) Check Your Full Customer Journey (Not Just The Ad)

Pricing representations can become misleading if the customer sees one price and later discovers extra compulsory costs.

Do a quick end-to-end review:

• ad or social post
• product page
• cart
• checkout
• confirmation email/tax invoice

Make sure the numbers line up and that any conditions (for example, exclusions, delivery charges, or time limits) are clearly disclosed upfront.

5) Train Staff So Pricing Is Applied Consistently

If you have a physical store, your point-of-sale practices matter too. Shelf labels, “sale” stickers, and staff statements can all contribute to what a customer reasonably believes the price is.

Consistent pricing systems also help you avoid disputes and complaints - which is good for compliance and your brand.

6) Use The Right Contract Documents If You’re Selling Through Resellers

If you sell through distributors or retailers, your agreements should clearly set out how pricing, promotions, and marketing claims are handled (including who is responsible for what, and what approvals are needed).

Depending on your model, you might also need agreements covering supply, distribution, reseller arrangements, or your broader Terms of Trade.

7) Avoid “Dodgy” Marketing Patterns (Even If Everyone Else Does It)

A lot of pricing problems aren’t intentional - they come from copying common eCommerce tactics that don’t translate well into compliant practice.

As a general rule, if your pricing strategy relies on confusing customers (or creating a false urgency), it’s worth stepping back. The Fair Trading Act is designed to stop misleading conduct, even when it’s become “normal” in certain industries.

If you’re unsure whether your pricing or promotions could cross the line, it can help to sense-check them against examples of unfair business practices before you launch.

Key Takeaways

• The difference between RRP vs MSRP in New Zealand is mostly about wording, but legally both can create a strong impression of a genuine reference price that customers can rely on.
• Under the Fair Trading Act 1986, you must not mislead customers about pricing - including by inflating RRPs/MSRPs, running perpetual “discounts”, or advertising prices that don’t match checkout reality.
• If you advertise “was/now”, “save $X”, or “RRP $X”, you should be able to substantiate the comparison with records (supplier documents, pricing history, or market checks) and have reasonable grounds for the claim at the time you make it.
• Be careful with “limited stock” and “too good to be true” promotions - they can raise bait advertising concerns if customers can’t reasonably access the deal.
• If you sell through retailers, be careful how you communicate “recommended” pricing - trying to enforce minimum resale prices can amount to resale price maintenance, which can be prohibited under the Commerce Act 1986.
• Strong legal foundations (clear terms, consistent pricing processes, and compliant marketing) help you grow confidently and avoid disputes later.

If you’d like help reviewing your pricing promotions, website terms, or reseller arrangements so you’re compliant with NZ consumer and competition laws, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.