Firms risk watchdog attack over dodgy ads during sales

Businesses are being put on notice ahead of Boxing Day over misleading advertising, after Australia's consumer watchdog found concerning practices during Black Friday sales.

The Australian Competition and Consumer Commission, which conducted a sweep of sales ads online and in store, is worried the claims about the size and scope of discounts might be misleading consumers.

ACCC deputy chair Catriona Lowe said these included practices such as advertising claiming "site wide" discounts in addition to "was/now" pricing.

"We are further considering some of these examples for investigation and action, and the ACCC has already asked a number of retailers to justify their advertising claims," she said.

"In the meantime, we are warning retailers ahead of post-Christmas sales that they must comply with Australian consumer law in all the claims they make.

Ms Lowe said the watchdog would continue internet sweeps of advertising practices throughout late-December sales.

"Businesses doing the right thing should not lose sales to businesses that are potentially misleading consumers," she said.

People have raised these concerns with the consumer watchdog, which is collecting data about the prices of products before, during and after the sales period.

The ACCC will review the data to decide whether businesses have artificially increased the price of goods to create the perception of a bigger sale.

The commission has already found examples of products that were "on sale" for the same non-sale price.

Under the rules, businesses cannot engage in misleading or deceptive conduct.

Consumers are being urged to examine claims about discounts or savings carefully, particularly during sales periods.

Ms Lowe said many consumers relied on sales to save money when shopping for products, particularly during the cost-of-living crisis.

"Retailers must not seek to take advantage of this by misleading consumers," she said.