Urgency cues are marketing tactics used by a business that create a sense of urgency and encourage consumers to make purchases right away. They can be found online, in-store, and in other channels, such as email and social media.
Urgency cues convey:
- Time limits, like sales end dates or countdown clocks
- Scarcity, like claims about low stock or high demand
Urgency cues can be magnified by letting consumers know what other shoppers are doing.
When misleading or untrue, urgency cues can run afoul of the law. The Competition Act prohibits businesses from making marketing claims that deceive consumers.
Fake urgency cues can harm the marketplace when deceptive tactics pressure consumers to buy quickly without considering their options. Likewise, businesses that engage in honest marketing may find it harder to compete and may lose customers or revenues.
The growing online marketplace provides a venue where fake urgency cues can easily be promoted. It’s important that consumers shop wisely, and that businesses do not use pressure tactics that mislead consumers.
Consumers, be alert
While urgency cues can provide valuable information to a consumer if they are true, be aware that some can be deceptive or fake.
Fake urgency cues use false claims to pressure you to buy. They try to trick or manipulate you into making a choice that you might not have otherwise made. They can take different forms, including messages, alerts, pop-ups, or countdown timers. Here are some common pressure tactics to look out for that may not be truthful:
- Limited time offer: The offer is only available for a limited time or the deal ends soon yet the discounted price continues to be available long after the advertised time limit.
- Countdown timer: The timer runs out or resets but the offer is still available.
- Low stock/high demand claims: “Only 2 left in stock – order soon”, “90% of stock is already gone” or “5 other shoppers are also looking at this product right now” but availability does not change over time.
Don’t fall for the pressure. Take the time you need to research your options before you buy. If you suspect a deceptive claim, report it to us using our online complaint form.
Best practices for businesses
When making marketing claims, remember:
- Only advertise a sale price if a true price reduction has occurred from the usual price (also known as the ordinary selling price).
- Do not run a sale for a long time or repeat it every week.
- Be truthful about the duration of the sale. Ensure that promotions do not continue beyond the advertised end date.
- Be accurate when you make claims about the number of items left or about demand such as the number of other shoppers considering the same purchase.
- Ensure that countdown timers do not run out or automatically reset while the sale price remains in place.
- Learn how to establish and maintain a corporate compliance program.
Penalties and remedies for non-compliance
The consequences associated with being found to have engaged in deceptive marketing practices depend on whether the conduct falls under the civil or criminal provisions of the Competition Act. They can include significant monetary penalties, restitution, prohibition orders, and even imprisonment. Learn more about the penalties and remedies.