A number of businesses were caught out and ultimately fined over their Black Friday sales tactics. (Source: Westfield/ACCC)
The consumer watchdog has put online retailers “on notice” as Australians are tipped to spend nearly $7 billion on the upcoming Black Friday sales. Authorities will be conducting “sweeps” to spot any dodgy sales tactics and try catch companies looking to attract customers with misleading or empty promises.
It’s not the first time the ACCC (Australian Competition and Consumer Commission) has been snooping around, conducting the digital equivalent of ‘secret shopper’ investigations. The consumer watchdog pinned a number of retailers during the sales last year for their marketing misdeeds.
The tactics authorities are on the look out for, which shoppers should also be alive to, include price window countdowns that create a false sense of urgency, misleading ‘site-wide’ or ‘store-wide’ claims about sales, and advertisements that promise up to a certain percentage off when very few items are actually discounted at that rate.
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“Misleading advertising may influence a consumer’s behaviour and impact their ability to make an informed purchasing decision during the sales,” ACCC Deputy Chair Catriona Lowe said on Monday.
“We will pay special attention to retailers who were identified as having problematic sales practices in the sweep we conducted during last year’s Black Friday and Boxing Day sales and expect to see improved compliance across the retail sector.”
Last year, among the businesses that were caught out by the regulator included popular jeweller Michael Hill, homewares retailer MyHouse and the online operation of Hairhouse Warehouse which offers hair and beauty products.
All the businesses paid a $19,800 penalty to the ACCC in June over their sales marketing conduct.
The so-called Black Friday–Cyber Monday sales – a commercial ‘holiday’ imported to Australia from the US – takes place from November 28 to December 1. But customers looking to get a good deal ahead of the Christmas shopping period are being urged to go into the sales with their eye wide open.
Some 6 million Australians are expected to take part in Black Friday sales at the end of the month. (Source: AAP)
“If consumers are waiting for the Black Friday sales to make a big purchase, we encourage them to consider checking the prices now before sales start, so they can compare the price and determine if they are making a legitimate saving,” Ms Lowe said.
If you think you see any dodgy promotions or misleading sales tactics, Aussies are urged to report them here.
According to the Australian Retailers Association (ARA) and research house Roy Morgan, Australian shoppers are poised to spend a record $6.8 billion over the weekend sales at the end of the month, up 4 per cent from last year.
That is backed up by research from The Mastercard Economics Institute (MEI) which is forecasting retail sales in Australia to grow by 3.7 to 4.2 per cent over the holiday period.
In total, some 6 million Australians are expected to take part in Black Friday sales.
ARA CEO Chris Rodwell said the four day event plays a vital role in boosting momentum for retailers across the crucial peak season trading period.
“Black Friday has firmly cemented its place on Australia’s retail calendar — delivering critical cashflow to discretionary retailers and small businesses who’ve faced subdued consumer activity for the past two years,” he said.
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