Fake sales and discounts

One of the objectives of the Competition Act is to deter deceptive marketing practices and to ensure consumers receive truthful information to help them make informed buying decisions.

Below are some examples of fake sales and discounts you might encounter.

Fake urgency cues

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.

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.

When false or misleading, urgency cues can raise concerns under the law.

False ordinary selling price

A price cannot be referred to as the ordinary or regular price when it is inflated to create the illusion of offering a better deal.

Businesses use two types of regular prices as a reference for claiming savings:

  1. a seller's own regular price, for example: “Our regular price $100, Now $50”
  2. a market price, for example: “List price $100, Our price $50”

Bait and switch selling

Bait and switch selling can happen when a product is advertised at a low price, but is not available in sufficient quantities. For instance:

  • A retailer advertises a product with a significant discount, but when the customer attempts to buy it, they find the item is out of stock or only available at full price.

Further reading

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