Agence France-Presse
Australia’s consumer watchdog has issued a warning to shoppers ahead of the Boxing Day sales, urging them to be wary of misleading online discounts.
According to News.com, a recent investigation by the Australian Competition and Consumer Commission (ACCC) revealed that some retailers were using deceptive “site-wide” discount claims and exaggerated “was/now” prices.
The Australian Competition and Consumer Commission’s investigation into online Black Friday sales has found many retailers were advertising discounts that were not real, including offering “sitewide” sales that excluded certain items or offering deals that were only available to members.
The regulator reported that Australian shoppers had raised concerns about “past/present” pricing, with many claiming prices were jacked up ahead of big sale periods.
“We know that many consumers rely on discounts to save money when they shop, especially during times when the cost of living is high and people may be saving for the holidays and festive season,” said Catriona Lowe, deputy chair of the committee. “Retailers must not use this to mislead consumers.”
Some stores use the phrase “up to X% off,” even though few products are fully discounted.
The commission also flagged the use of the “recommended retail price” (RRP) as a base price for advertised offers, warning that this could be misleading if the product had not recently sold at the RRP, Sky News reported.
As the Boxing Day sales approach, the ACCC will continue to monitor pricing practices and remind businesses that the Australian Consumer Law prohibits them from making false claims about prices and discounts.
“We are considering these cases further and are investigating and taking action, with the ACCC already asking a number of retailers to justify their advertising claims,” Mr Lowe said. “In the meantime, we are warning retailers ahead of the big post-Christmas sales that they must comply with the Australian Consumer Law in all their communications.”
The ACCC’s warning comes after a worrying report from the Salvation Army found 29.9 per cent of Australians “will struggle to pay their rent or mortgage this Christmas”. The report also revealed one in five people would have to forgo health services to afford Christmas.
In addition, an estimated 1.9 million Australians will seek help from charities over the holiday season, with 54 per cent doing so for the first time.
Major Bruce Hamer of the Salvation Army said: “It is heartbreaking to see Australians making such desperate and distressing decisions just to feed their families this Christmas.
