Retailers Circumvent Price Laws Ahead of Black Friday, Analysis Reveals

Recent analysis from a leading price comparison platform has uncovered a new trend among online retailers in the lead-up to Black Friday. By monitoring nearly three million prices during October, the platform found that 13 percent of online product prices increased by more than 10 percent during the month.

This strategy enables retailers to advertise seemingly significant discounts during Black Friday by first raising prices well before the sales event. According to updated legislation introduced in 2022 to counter misleading pricing practices, retailers are required to display the lowest price a product has held in the previous 30 days when promoting a discount. Despite this regulation, several retailers have adjusted their tactics to avoid breaching the law. Instead of making last-minute price hikes, prices are now elevated weeks in advance, resulting in a higher official 'lowest price' for the period prior to sales events.

Analysis shows that this approach has become more prevalent since the new rules took effect. The price increases are especially noticeable in categories such as clothing and footwear, with children's boots, hiking shoes, and jackets demonstrating significant upward adjustments. The trend is also evident in electronics, with items such as televisions, washing machines, and dishwashers affected.

Consumer advocacy organizations have noted that compliance with the updated pricing information law remains inconsistent. Investigations have indicated that a significant proportion of e-commerce businesses do not provide transparent information regarding the lowest price over the previous month. This lack of transparency can make it challenging for consumers to accurately assess whether advertised discounts are genuine.

Experts advise shoppers to adopt a proactive approach to ensure they receive authentic deals. It is recommended that consumers track prices for at least six days prior to making a purchase, and ideally review price trends over several months. By doing so, buyers can identify genuine discounts and avoid falling for artificially inflated reductions.

The findings also highlight the importance of consumer vigilance during major sales periods like Black Friday, when deceptive marketing tactics are more likely to be employed. Those looking to make purchases during these events are encouraged to compare prices across multiple platforms and reference historical pricing data to verify the legitimacy of advertised discounts.

This evolving pricing strategy underlines the ongoing challenge of protecting consumers in the digital marketplace and the need for continual monitoring and enforcement of fair trading laws. As retailers adapt to new regulations, consumer awareness and access to transparent pricing information remain crucial in ensuring fair competition and genuine savings during major promotional periods.