By Kate Harvey
Writer | Kaituhi
Peak sale season is here. Once Labour Weekend has passed, Black Friday advertising will inundate our email inboxes. Those sales will morph into the December pre-Christmas sales. And then advertising will start for the Boxing Day sales before the big day has even happened.
On this page
- 1. Use sales prices that aren’t that special
- 2. Exaggerate the discount
- 3. Use ‘clearance’ on products that are coming back after the sale
- 4. Charge more than the advertised price
- 5. Only have limited stock at advertised discount prices
- 6. Advertise discounts that only apply to a few products
- 7. Say there is no return on sale items
- 8. Give only store credit on returned faulty items
- 9. Put a time limit on the return of faulty items
- 10. Make claims like ’cheapest’ without evidence
During all these sales, there are some rules that stores must follow.
We’ll be on the lookout for any rule-breakers over the next few months. If you spot any stores doing any of the 10 things listed below, we’d love you to send us a pic to [email protected].
Here’s what they cannot do.
1. Use sales prices that aren’t that special
A sale must be a genuine opportunity for consumers to buy a product at a discounted price for a short period. If a business continually sells a product at a discounted price, then that’s the usual selling price – not a sale price.
Rather than assuming a sale price is a good deal, check PriceMe and PriceSpy to see what the product usually sells for. Both websites track the price of products, making it easy to see if you can snaffle a bargain.
Looking for a deal?
This year, we’re tracking the sales to help Consumer members spot the bona fide bargains, based on both price and performance.
2. Exaggerate the discount
When a retailer compares a sale price with a previous price (for example “was $100, now $50”), the "was" price must be the true price the goods were sold at for a reasonable time.
The retailer also should not inflate the normal price of a product, knowing it won’t be bought at that price, only to discount it to get sales.
3. Use ‘clearance’ on products that are coming back after the sale
Clearance sales create a sense of urgency. They should only be used for clearing stock. You shouldn’t see clearance stock back on the shelves at full price after the sale has ended.
4. Charge more than the advertised price
The price displayed should be clear and accurate, and you should generally be able to expect it’s the price you’ll pay. If GST isn't included, or there are other unavoidable charges, the retailer must make this clear upfront. Retailers can’t hide extra charges in the fine print or rely on a vague statement such as “conditions apply” to correct a misleading price.
Sometimes, a retailer might make a genuine pricing mistake, like listing a $2,000 TV for just $200 in a catalogue. They’re not legally obligated to honour the price if it’s an honest mistake. But deliberately or repeatedly putting up the wrong price is likely to breach the Fair Trading Act, even if the retailer didn’t intend to mislead customers.
5. Only have limited stock at advertised discount prices
Retailers can’t advertise a product at a great price to lure customers in if they don’t have enough stock to meet reasonable demand. This is called bait advertising. Retailers must be able to supply the advertised product at that price in reasonable quantities and for a reasonable period, unless clear limits apply. Simply saying “while stocks last” may not be enough.
6. Advertise discounts that only apply to a few products
Stores can’t make a sale look better than it is. They can’t use sweeping statements like “up to 50% off” or “prices from $5” if they only have a few products at that price. Stores should instead advertise the most common saving. The Commerce Commission suggests “up to 50% off – most items 30% off”.
7. Say there is no return on sale items
You still have the right to return sale items if they:
aren’t of acceptable quality
aren’t fit for purpose
don’t match their descriptions.
This applies even if there is a sign instore or a line on a website about a product being on “final sale”.
The only exception is if the fault was made clear to you before you bought the item. For example, the sales tag for a dress lists a small hole on the right sleeve. However, you can still return an item if it has another unidentified fault.
8. Give only store credit on returned faulty items
If you’re returning a product because it doesn’t comply with one of the guarantees under the Consumer Guarantees Act (CGA), you don’t have to accept a gift card or store credit. The CGA makes it clear you are entitled to a refund, repair or replacement. You can insist on a refund if the problem is serious or can’t be fixed or if the retailer fails to fix it within a reasonable time.
9. Put a time limit on the return of faulty items
The CGA doesn’t set a fixed time limit for returning faulty goods, and a retailer can’t refuse to help simply because a product is outside its warranty period. But if you want to reject a faulty product, you need to act within a reasonable time.
How long a product should last depends on several factors, including its price, quality and intended use and any claims made about it. For example, you’d generally expect an expensive new washing machine to last longer than a cheap secondhand one.
10. Make claims like ’cheapest’ without evidence
Claims like these give shoppers the impression they don’t need to go anywhere else to compare prices. Shops need to ensure these claims are accurate and that they can back them up.
