Shoppers warned of dodgy discounts as Black Friday sales kick off

Bogus "countdown timers", false "storewide" discount claims and misleading price comparisons are all in the regulator's sights ahead of this year's Black Friday sales season.

Americans are yet to defrost their turkeys, but some Australian retailers have already launched their post-Thanksgiving sales as cash-strapped shoppers try to nab a bargain before Christmas.

It has prompted a warning from the consumer watchdog about a proliferation of illegal marketing tactics.

The Australian Competition and Consumer Commission (ACCC) has expanded its annual "sweep" of Black Friday advertisements from retailer websites to also include social media posts and marketing emails.

"Consumers should be aware that a 'sale' sign doesn't always mean it's a good deal," warns ACCC deputy chair Catriona Lowe.

"We know some businesses use tactics to mislead consumers into thinking they are getting a bargain even when they are not."

Six Australian retailers, including Michael Hill and MyHouse, have been fined a collective $217,800 by the ACCC over the past two years for misleading advertising during the Black Friday sales.

This year, the consumer watchdog is urging cash-strapped Australian shoppers to be on the lookout for the following four misleading sales tactics.

False 'sitewide' or 'storewide' discount claims

The ACCC fined jewellery retailer Michael Hill $19,800 last year for advertising a Black Friday "Member Event 25% off Sitewide" sale online, when, in fact, not all the products on its website were part of the sale and discounted.

MyHouse was also fined $19,800 after the ACCC found the homewares retailer's Black Friday advertising of "Up to 60% Off Sitewide" was misleading as it didn't apply to all products and the asterisk referring to "terms and conditions" was not prominent enough.

"Retailers should not be relying on fine print disclaimers or exclusions to qualify the headline message of a promotion,"

Ms Lowe said.

Bogus countdown timers or 'time-limited' offers

Websites displaying countdown timers or "time-limited" offers are also under the microscope.

Such timers are misleading and deceptive to consumers if the advertised offers extend beyond the stated end date.

Furniture retailer James Lane was fined $19,800 for advertising that claimed its Black Friday sale last year would end on December 3.

An ACCC investigation found the retailer had, in fact, decided in advance of launching its campaign that the sale would last beyond the advertised end date, which it did, for one week.

Trampoline and children's outdoor playset retailer Vuly paid penalties of $39,600 for two separate instances where it used a bogus countdown timer.

Its online Click Frenzy countdown timer advertised — to the exact second — when an "up to 30% off" sale would end. At that time, however, the clock simply reset to a new and boosted sale offer of "up to 45% off".

"Retailers risk ACCC enforcement action if they misrepresent the size, scope or duration of their sales," Ms Lowe said.

False 'low stock' claims and scarcity messaging

Shoppers should also be alert to other pressure-selling tactics, including misleading testimonials and messages designed to create a sense of scarcity, such as warnings about low stock availability, the ACCC said.

The deputy CEO of the Consumer Policy Research Centre (CPRC), Chandni Gupta, said "scarcity cues" could include notifications such as "10 people are looking at this product right now".

Retailers may also use warnings that stock is low — for example, "only 1 item left!" — when, in fact, new stock may be arriving the next day.

"There is an imbalance of power as there is no way for a consumer to confirm whether the urgency is real or not," she said.

She urged shoppers to be wary of pressure sales tactics this Black Friday season.

"If the deal looks too good to be true, it probably is," Ms Gupta cautioned

"If it wasn't on your wish list before it went on sale, reconsider whether it deserves to be in your cart."

Misleading discounts and price comparisons

Finally, the ACCC is warning consumers to be sceptical of advertisements offering large percentage discounts, such as 50 per cent or more off.

If the product has not actually been sold at the higher price before the sale, the discount is unlawful under Australian Consumer Law.

Electronics retailer digiDirect recently amassed fines totalling $99,000 across five instances where it mislead consumers with the discounts it displayed across a range of products.

Despite claiming "price slashed" and the use of strike-through price discounting, an ACCC investigation found digiDirect rarely sold the products at the higher price.

One example was a mini wireless keyboard, advertised as on sale for $149, down from $229.

Misleading "was/now" discount advertising has been in the regulator's sights this year, including the recent ACCC case against grocery giant Coles for its "Down Down" discounts.

"Consumers continue to look for the best prices and may delay major purchases until Black Friday and Cyber Monday in anticipation of good value and legitimate discounts," Ms Lowe said.

"Consumers should be able to trust that the advertised savings and discount prices are genuine."

'They can't get away with it'

The warning comes as the ACCC is being urged to act against retailers abusing consumer protection laws.

"I think it is vital that the ACCC takes strong enforcement action against retailers who mislead and rip off people," said Meg Dalling from the Consumer Action Law Centre.

"There needs to be a strong signal that they can't get away with it. This is particularly important now as in the cost-of-living crisis every dollar counts."

CPRC's Ms Gupta said new laws against "unfair trading" coming into effect next July should help to protect consumers from "dark patterns" in advertising tactics, including bogus countdown timers and low-stock notifications.

"Our research has shown 83 per cent Australians have had a negative experience with these dark pattern sales tactics," she said.

"People have lost money. They felt pressure to make a purchase that they otherwise wouldn't, or they paid more than they would have otherwise due to these tactics."

Separately, the ACCC has urged shoppers to be wary of fake online shop fronts replicating the websites of legitimate retailers during the Black Friday sales period, cautioning shoppers to double-check the credentials of any site they visit, which can include making sure the web address starts with "https://" and shows a locked padlock symbol.

If shoppers spot an advertisement they think is misleading or deceptive, they can report it to the ACCC via the Report a consumer issue page.