ACCC warns shoppers about misleading discounts and promotions during Black Friday

As the festive season approaches, the anticipation for Boxing Day sales is palpable among Australian shoppers.

It's a time when we all look forward to snagging a bargain, especially in the wake of Black Friday deals that promise hefty discounts.

However, it's also a time to be vigilant, as not all deals are as good as they seem. The Australian Competition and Consumer Commission (ACCC) recently issued a stark warning: watch out for dodgy discounts and misleading marketing tactics that some online retailers employ.


The ACCC's recent sweep of online stores during the Black Friday sales period uncovered a worrying trend of deceptive 'site-wide' discounts and dubious 'was/now' pricing strategies.

These tactics can give the false impression of significant savings when the deals may not be as generous as they appear.


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The ACCC warns of misleading discount claims by online retailers during sales events like Black Friday and Boxing Day. Credit: ACCC


The commission's deputy chair, Catriona Lowe, expressed concern that retailers might exploit consumers' reliance on sales to manage their budgets.

'We know that many consumers rely on sales to save money when shopping for products, especially during this time of cost of living pressure, and when people may be seeking to save up for holidays and festivities,' she said.

With the rising cost of living and the holiday season being a period of increased expenditure, shoppers mustn't be misled into thinking they are saving more than they are.


Under Australian Consumer Law, businesses are prohibited from engaging in misleading or deceptive conduct, including making false or misleading claims about prices and discounts.
Yet, the ACCC has found numerous instances where online retailers advertised site-wide Black Friday sales but excluded certain items from the discounts.

Some retailers even added disclaimers stating that the deals were exclusively for members, or they referenced recommended retail prices that were never actually used.

Another common tactic is 'up to X per cent off' promotions, where only a few items are discounted to the advertised maximum, leaving many consumers disappointed.

‘We have seen many instances of appropriate and accurate advertising during the Black Friday sales,’ Ms Lowe stated.

‘These include prominent exclusions and accurate claims about the scope of sales.’


Despite these concerning findings, the ACCC also noted many examples of proper and truthful advertising, with explicit exclusions and accurate claims about the extent of sales.

The ACCC's ongoing research aims to determine whether businesses artificially inflate prices before sales events to create the illusion of more substantial discounts.

This practice misleads consumers and undermines the trust essential for a healthy marketplace.
Key Takeaways

  • The Australian Competition and Consumer Commission (ACCC) has warned of misleading discount claims by online retailers during sales events such as Black Friday and Boxing Day.
  • The ACCC found dubious 'was/now' pricing, unclear 'site-wide' discounts, and false claims about the extent of deals offered.
  • Businesses are reminded by the ACCC that under Australian Consumer Law, they cannot engage in misleading or deceptive conduct concerning pricing and discounts.
  • While the ACCC acknowledged that there are retailers with appropriate and accurate advertising, it has asked some retailers to justify their claims and will continue monitoring to ensure compliance.
Have you encountered any dodgy discounts? How were you able to spot it? Feel free to share your thoughts and experiences in the comments below.
 

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