Some of the tactics it is looking out for include:<\/p>\n
misleading “limited time” offers that create a false sense of urgency<\/p>\n
misleading “site-wide” or “store-wide” claims about sales<\/p>\n
claims of “up to X% off”, where few products are on sale at X% off<\/p>\n
fine print or disclaimers that limit headline claims about the sale<\/p>\n
misleading “was\/now” or “strikethrough” pricing claims<\/p>\n
The ACCC pointed to the outcome of last year’s targeted efforts, which saw Michael Hill, MyHouse and Hairhouse pay penalties of nearly $20,000 each<\/a> after being accused of such practices.<\/p>\n Michael Hill<\/p>\n Michael Hill paid a $19,800 infringement notice in relation to an alleged misleading representation about its Black Friday sale when its website featured the wording “Member Event 25% off Sitewide”.<\/p>\n ACCC deputy chair Catriona Lowe said that might have misled shoppers because “some of the products in its online store were not part of the sale”.<\/p>\n MyHouse<\/p>\n Homewares retailer GRBA paid a $19,800 infringement notice over ads on its MyHouse website.<\/p>\n The website featured the wording: “Up to 60% OFF RRP EVERYTHING ON SALE” followed by the text “+EXTRA 20% OFF” \u2014 when that extra discount did not apply to everything on the site.<\/p>\n “Retailers need to ensure that their advertising makes it clear to consumers which products are discounted, and by how much,” Ms Lowe said.<\/p>\n Hairhouse Online<\/p>\n Hairhouse Online paid one infringement notice of $19,800 over a notice on its website saying “SAVE 20% to 50% SITEWIDE”.<\/p>\n The ACCC said this would have made consumers think all items on its website would be discounted by between 20 and 50 per cent during the sale.<\/p>\n However, the ACCC said this was misleading because more than a quarter of the products were not included in the sale offer.<\/p>\n What should I be looking out for?Countdown clocks The ACCC is looking for countdown clocks that are not accurate, saying they create a false sense of urgency.<\/p>\n But you should be wary of them even if they are correct.<\/p>\n “Countdown clocks make us feel there’s a limited period of time,” Jeannie Marie Paterson, a professor at the University of Melbourne who specialises in consumer law, says.<\/p>\n “We don’t think. We go, ‘I better get it.'”<\/p>\n But it is not just countdown clocks that play on this type of reaction.<\/p>\n Professor Parterson has been experimenting by putting things in her cart on some shopping websites, but not going through with the sale.<\/p>\n “And guess what, I get all these emails saying ‘don’t let it get away’, and sometimes offering more discounts,” she said.<\/p>\n “It’s ridiculous that I have to play this cat and mouse game.”<\/p>\n ‘Only one left!’ claims Kerrie Bridson, an associate professor of marketing at Deakin University, warned shoppers to be wary of scarcity tactics like websites saying there are only a few items left.<\/p>\n “It is just not truthful for large retailers with extensive stock reserves,” Dr Bridson said.<\/p>\n The fear of missing out is a powerful spending motivator.<\/p>\n “Consumers with heightened emotions, or feeling pressure to grab a deal, are less likely to make a rational assessment of the real value of the discount being offered to them,” Professor Paterson said.<\/p>\n And that makes people more likely to buy.<\/p>\n Huge discounts and small print You may expect big discounts during Black Friday sales, but be wary of discounts that seem too good to be true.<\/p>\n Dr Bridson warned about stores hiking prices before the sales hit, and then reducing them drastically by the time Black Friday arrives, all so they can spruik massive discounts.<\/p>\n “Massive sales signage, such as up to 70 to 80 per cent off, cause me concern,” she said.<\/p>\n “They are often for stock out of season, which failed to sell, and are not for items shoppers may actually want.”<\/p>\n It is also worth scouring the ad or website for fine print that qualifies big statements about discounts.<\/p>\n If you see a symbol next to the big headline statement, try to find the corresponding footnote about pricing that goes with it.<\/p>\n The lure of bagging a massive bargain can be hard to ignore.<\/p>\n “Deals hit the same reward centres in the brain as winning [the lottery],” Dr Bridson said.<\/p>\n “These feelings can override rational thinking, even for people who swear they’re too smart for it and do their price checking first.”<\/p>\n ‘Site-wide’ sales The ACCC is also warning about sales that might seem to apply to all stock, but actually exclude some items.<\/p>\n “For some consumers, they may add more to their check-out basket assuming it’s all on sale, occasionally finding suddenly it is not the price you expected overall,” Dr Bridson said.<\/p>\n “It’s small language, but it has big consequences for some, but not all shoppers.”<\/p>\n Why are these tactics so bad?<\/p>\n Hard sell tactics and inflated claims might seem par for the course for this time of the year, and savvy shoppers might think they won’t fall for these tactics, but Professor Paterson says the cumulative effect of them should not be dismissed.<\/p>\n “The concern is that people spend too much because they’re caught up in the idea of getting a saving,” Professor Paterson said.<\/p>\n “Or they are actually ripped off because the promotions aren’t accurate.”<\/p>\n Professor Paterson said advertisers can engage in “deceptive design” to make us spend more than we planned.<\/p>\n “There are a variety of cues sent to consumers that play on their subconscious,” she said.<\/p>\n “The markets know how to prod us into making poor decisions.”<\/p>\n And it is not just bad for shoppers \u2014 it can also give those dodgy dealers an unfair advantage over the retailers doing the right thing.<\/p>\n “If sellers can trick consumers into buying goods at discounts that are actually illusory, those dishonest sellers gain an advantage over honest sellers selling at a transparent and accurate price,” Professor Paterson wrote in a piece for The Conversation<\/a>.<\/p>\n “This risks a market that rewards poor conduct and encourages an overall rush to the bottom.”<\/p>\n How do I avoid being duped?<\/p>\n Slow down and approach the sales period with scepticism.<\/p>\n “Be wary about claims made about discounts or savings during key sale periods,” an ACCC spokesperson said.<\/p>\n “Check carefully for any disclaimers or qualifications in advertised promotions.”<\/p>\n If there is a particular product you are looking to buy, take a screenshot of it now so you can compare the price with future discounts.<\/p>\n And do not be loyal to just one store \u2014 compare the prices for that item offered by different retailers.<\/p>\n<\/p>\n
Inaccurate countdown clocks may create a false sense of urgency in consumers, the ACCC says.(Australians Competition and Consumer Commission)<\/p>\n
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If you look really closely, you can just the words “up to” written in tiny writing in the top of the number six in this website banner.\u00a0(Australian Competition and Consumer Commission)<\/p>\n
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Some retailers may claim discounts apply “site-wide” but not apply them to every product.(Supplied: Australian Competition and Consumer Commission)<\/p>\n
Many retailers are offering discounts as part of the Black Friday sale period.\u00a0(AAP: Bianca De Marchi)<\/p>\n