December 17th 2024.
Retailers have come under fire for using deceptive advertising tactics during the Black Friday sales period, according to the Competition and Consumer Competition. The consumer watchdog's recent internet sweep revealed that several retailers may have misled consumers with exaggerated claims about the size and scope of discounts.
The ACCC flagged various concerning practices, such as falsely labeling discounts as "sitewide" when they were not, using misleading "was/now" pricing tactics, and making misleading statements about the value of discounts offered. These tactics could mislead consumers into thinking they were getting a better deal than they actually were.
Deputy Chair Catriona Lowe issued a warning to retailers to be cautious of their advertising practices leading up to the post-Christmas sales period. She stated that the ACCC is currently investigating and taking action against some of the examples of misleading advertising they have come across. Additionally, they have asked certain retailers to justify their advertising claims.
However, the ACCC also acknowledged that there were many instances of accurate and appropriate advertising during the Black Friday sales. These included clearly stating exclusions and providing accurate information about the scope of the sales.
The ACCC will continue to monitor advertising practices throughout late December, collecting data on the cost of retail goods before and after the sales period. This will help them crack down on misleading "was/now" pricing and determine if businesses have artificially inflated prices.
Lowe emphasized that many consumers rely on sales to save money, especially during times of financial strain and when they may be planning for upcoming holidays and celebrations. Retailers should not take advantage of this by using deceptive advertising tactics.
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