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Once again, the annual shopping extravaganza known as “Black Friday” is almost here, falling on November 28 this year. But sales are already well underway.
It started as a one-day discount shopping event on Friday Thank you A week-long sales festival has hit stores and online across the United States. And it has spread around the world – including Australia.
It may seem like a good time to bargain. But this week, the Australian competition and consumer Commission (ACCC) gave notice to retailers. The consumer watchdog announced it will monitor a variety of deceptive sales practices that could be used to defraud consumer,
If found to have engaged in misleading or deceptive sales conduct, retailers may face hefty financial penalties. But as a consumer, it is also beneficial to understand how these shady strategies work, so that you are not duped this sales season.
Questionable sales tactics
The ACCC says it is looking into misleading or deceptive sales advertising tactics. Examples include:
- advertising sales As “storewide” when only certain items are discounted
- Countdown clocks or timers that show a shorter duration than the actual duration sales (to create false urgency)
- Fine print disclaimers that exclude certain items from sale
- “Up to
- Comparison of the discount price before and after the sale is not accurate (in that the price has increased in the short period before the discount was applied).
Sadly, there are many examples of allegedly deceptive sales conduct during peak shopping periods.
After the same sweep as last year black Friday Sales, the ACCC recently fined three retailers for allegedly misleading customers by advertising discounts as “storewide” when only certain items were on sale. sales,
In 2019, online marketplace Kogan offered a “tax time” discount of 10% on products whose price had increased immediately before the promotion (in most cases by at least 10%). It was later fined A$350,000 for deceptive conduct in breach of Australian consumer law.
Why is the ACCC so tough on this type of conduct?
These examples of questionable conduct may seem annoying. But they don’t seem bad at all – like selling a physically dangerous product.
Why is the ACCC so concerned about deceptive conduct and indeed retail pricing at the time of the Black Friday sales?
Shouldn’t consumers be more careful? The answer lies in the cumulative harm of deceptive pricing conduct.
Tricking consumers through marketing
Sales depend on consumers thinking they are getting a good deal on the products they want. And sometimes sales marketing attempts to convince consumers that the deal is better than it actually is.
Marketing strategies such as countdown timers, strike-through prices or promoted large percentage discounts are designed to appeal to consumers’ emotions and motivate them to make a purchase.
About the author
Jenny Marie Patterson is Professor of Law (Consumer Protection and Credit Law) at the University of Melbourne.
This article is republished from Conversation Under Creative Commons license. read the original article,
Consumers who are feeling heightened emotions or pressure to grab a deal are less likely to rationally evaluate the actual value of a discount being offered. This is why truth is so important in sales advertising.
What are consumer protection laws for?
We have strong protections against deceptive conduct in Australia for good reason. If sellers can trick consumers into purchasing goods at a discount that is actually misleading, then those dishonest sellers have an advantage over honest sellers who sell at a transparent and accurate price.
This threatens a market that rewards bad behavior and encourages an overall downward trend.
Australian consumer law takes the view that consumers should be able to take at face value the advertisements they see.
Consumers should not assume that sellers will deceive them.
Such an approach would not be consistent with the objective of enhancing “the welfare of Australians” through “promoting competition and fair trade” which is the basis of Australian consumer law.
stop a bad deal
If you’re considering purchasing items in the Black Friday sale, it’s a good idea to take a screenshot of the item before it goes on sale. This way, you can check if the sale discount is genuine and that the item is actually what you want (not an old or cheap model).
When shopping in a sale, take time to look at the discounts being offered. Is this a real discount? Does it justify the expense leading up to the holiday period? The discount may be marked in an attractive color but it still does not represent good value.
Finally, if you feel you have been misled by pricing tactics, such as a discount that is not genuine or advertised discounts containing fine print, you can complain to the ACCC.
Ideally, take a screenshot of what was advertised and what you received to support your claim that you were treated fairly at the time of sale.