Pre-Christmas shoppers warned of dodgy discounts as Black Friday sales kick off
By Google News Category Shopping ·
Retailers are being warned not to use dodgy sales tactics this Black Friday. (ABC News: Daniel Irvine)
Bogus "countdown timers", false "storewide" discount claims and misleading price comparisons are all in the regulator's sights ahead of this year's Black Friday sales season.
Americans are yet to defrost their turkeys, but some Australian retailers have already launched their post-Thanksgiving sales as cash-strapped shoppers try to nab a bargain before Christmas.
It has prompted a warning from the consumer watchdog about a proliferation of illegal marketing tactics.
The Australian Competition and Consumer Commission (ACCC) has expanded its annual "sweep" of Black Friday advertisements from retailer websites to also include social media posts and marketing emails.
"Consumers should be aware that a 'sale' sign doesn't always mean it's a good deal," warns ACCC deputy chair Catriona Lowe.
"We know some businesses use tactics to mislead consumers into thinking they are getting a bargain even when they are not."
Six Australian retailers, including Michael Hill and MyHouse, have been fined a collective $217,800 by the ACCC over the past two years for misleading advertising during the Black Friday sales.
This year, the consumer watchdog is urging cash-strapped Australian shoppers to be on the lookout for the following four misleading sales tactics.
The ACCC fined jewellery retailer Michael Hill $19,800 last year for advertising a Black Friday "Member Event 25% off Sitewide" sale online, when, in fact, not all the products on its website were part of the sale and discounted.
A Michael Hill advertisement for a member sale. (Supplied: ACCC)
MyHouse was also fined $19,800 after the ACCC found the homewares retailer's Black Friday advertising of "Up to 60% Off Sitewide" was misleading as it didn't apply to all products and the asterisk referring to "terms and conditions" was not prominent enough.
MyHouse was fined by the ACCC. (Supplied: ACCC)
Websites displaying countdown timers or "time-limited" offers are also under the microscope.
Such timers are misleading and deceptive to consumers if the advertised offers extend beyond the stated end date.
Furniture retailer James Lane was fined $19,800 for advertising that claimed its Black Friday sale last year would end on December 3.
James Lane's sale extended beyond the advertised end date. (Supplied)
An ACCC investigation found the retailer had, in fact, decided in advance of launching its campaign that the sale would last beyond the advertised end date, which it did, for one week.
Trampoline and children's outdoor playset retailer Vuly paid penalties of $39,600 for two separate instances where it used a bogus countdown timer.
Its online Click Frenzy countdown timer advertised — to the exact second — when an "up to 30% off" sale would end. At that time, however, the clock simply reset to a new and boosted sale offer of "up to 45% off".
Vuly's countdown clock went down to the second. (Supplied: ACCC)
"Retailers risk ACCC enforcement action if they misrepresent the size, scope or duration of their sales," Ms Lowe said.
Shoppers should also be alert to other pressure-selling tactics, including misleading testimonials and messages designed to create a sense of scarcity, such as warnings about low stock availability, the ACCC said.
The deputy CEO of the Consumer Policy Research Centre (CPRC), Chandni Gupta, said "scarcity cues" could include notifications such as "10 people are…
Originally published by Google News Category Shopping
