Five sales tactics every shopper should know before Black Friday
Again, the annual shopping spree known as “Black Friday” is roughly on November 28th this year. But sales are already going well.
What started as a one-day discount shopping event on the Friday after Thanksgiving in the US has turned into a week-long sales festival in stores and online. And it has spread to many parts of the world – including Australia.
This might be a good time to try to get a deal. But this week, the Australian Competition and Consumer Commission (ACCC) warned retailers. The consumer watchdog said it was looking into various types of misleading sales practices that could be used to trick consumers.
Retailers can face heavy financial penalties if they are found to be engaging in misleading or deceptive selling behavior. But as a consumer, it pays to know how these shady tactics work so you can’t be fooled this sales season.
Inappropriate sales tactics
The ACCC says it is looking into a range of misleading or deceptive sales advertising tactics. Examples are:
- Advertise a sale as a “store” when only certain items are discounted
- Countdown clocks or timers that show less time than actual sales (to create false urgency)
- Fine print ad excluding certain items from sale
- “Up to X% off” discount that only applies to a few items (or until the “full” text is not prominently displayed)
- Price comparisons of pre-sale and post-sale discounts that are not exact (including cases where the price was increased shortly before the discount was applied).
Unfortunately, there are many examples of bad sales behavior that occur during the buying cycle.
Following similar action on Black Friday sales last year, the ACCC recently fined three retailers for misleading customers by advertising discounts as “in store” when only certain items were on sale.
In 2019, Kogan’s online marketplace offered a 10% “tax time” discount on products whose prices had increased immediately prior to the promotion (by at least 10% in most cases). It was later fined A$350,000 for misleading conduct in breach of the Australian Consumer Law.
Why is the ACCC so strict about this type of behaviour?
These examples of misbehavior may seem confusing. But it turns out that they are not so bad – like selling dangerous physical products.
Why is the ACCC concerned about wrongdoing around Black Friday sales and indeed retail prices in general?
Shouldn’t consumers be more cautious? The answer lies in the cumulative loss of misleading pricing behavior.
Manipulation of consumers through marketing
Sales depend on consumers thinking they are getting a good deal on the products they want. And sometimes sales marketing tries to convince the customer that the deal is better than it is.
Marketing strategies such as countdown timers, record-breaking prices, or high percentage discounts are designed to appeal to customers’ emotions and encourage them to stop shopping.
About the author
Jenny Marie Peterson is Professor of Law (Consumer Protection and Credit Law) at the University of Melbourne.
This discussion article is republished under a Creative Commons license. Read the original article.
Consumers who have strong emotions or feel pressured to get a deal are less likely to appreciate the true value of the discount they are being offered. That’s why authenticity is so important in sales pitches.
What are consumer protection laws for?
We have strong protections against misleading behavior in Australia for good reason. If sellers can induce customers to buy products at discounts that are actually deceptive, then unscrupulous sellers have an advantage over honest sellers who sell transparently and at fair prices.
This creates a risk-taking market that rewards poor behavior and encourages a general rush to the bottom.
Australian Consumer Law believes that consumers should be able to buy advertising that they believe to be true.
Consumers should not think that they are being cheated by sellers.
Such behavior is inconsistent with the objective of enhancing the “welfare of Australians” by “promoting competition and fair trade” which underpins the Australian Consumer Law.
Stop a bad deal
If you’re planning to buy items in the Black Friday sale, it’s a good idea to take a screenshot before the sale. This way, you can check that the sale is real and that the item you are looking for is exactly the same (not an old or cheap model).
When shopping at the outlet, take the time to check out the discounts offered. Is the discount real? Does it justify spending so close to the holidays? Discounts may be marked with attractive colors, but they still do not represent good value.
Finally, you can complain to the ACCC if you believe you have been misled by a pricing strategy, such as a discount that is not true or an inaccurate discount being advertised.
Ideally, take screenshots of what was advertised and what you received to support your claim that they were treated fairly during the sale.
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