Is the Discount on Your Shopping Real or Fake? | Vantage with Palki Sharma

Summary

Australian consumer watchdogs are suing supermarket giants Coles and Woolworths for deceptive pricing, where products are marked up before being advertised as discounted. This practice, common worldwide, tricks consumers into thinking they're getting a deal when they're often paying more. The UK sees only 1 in 20 Black Friday discounts as genuine, while in the US, over half of major retailers' products are falsely discounted. Consumers globally face this issue, with 51% reporting regular exposure to fake discounts. To combat this, consumers can use price tracking and comparison tools, and governments should enforce stricter regulations against deceptive pricing.

Takeaways

• 🛒 Retailers often use deceptive pricing strategies to attract customers.
• 🇦🇺 Australia's consumer watchdog has sued two major supermarket chains, Coles and Woolworths, for deceptive pricing.
• 📈 These supermarkets allegedly offered products at regular prices for long periods, then increased prices temporarily before offering 'discounts' at the higher prices.
• 💸 Deceptive pricing tricks consumers into believing they are getting a better deal when they are not.
• 🍪 An example given is an Oreo family pack that was regularly priced at $3.50, increased to $5.00, then 'discounted' to $4.50, which was actually 29% higher than the original price.
• 🌍 Deceptive pricing is a global issue, with studies showing that a significant percentage of discounts are not genuine.
• 🇬🇧 In the UK, only 1 in 20 Black Friday discounts are genuine.
• 🇺🇸 In the US, more than half of the products sold by major retailers are offered at false discounts.
• 📊 Consumers worldwide, especially in the UK, Mexico, Sweden, Spain, the US, and India, regularly face phony discounts.
• ⚖️ Legal action against deceptive pricing is difficult for consumers as they must prove harm.
• 🔍 Consumers can use price tracking websites and price comparison tools to verify if discounts are genuine.

Q & A

What is the main issue discussed in the transcript?

The main issue discussed is deceptive pricing practices by supermarkets, where they offer products at seemingly discounted prices that are actually higher than or the same as the regular price.

Which two supermarket chains in Australia are mentioned in the transcript?

The two supermarket chains mentioned are Coles and Woolworths, which are the two biggest chains in Australia.

What is the term used to describe the deceptive pricing practice discussed in the transcript?

The term used to describe this deceptive pricing practice is 'deceptive pricing'.

How does deceptive pricing work according to the transcript?

Deceptive pricing works by first setting a regular price, then artificially inflating the price for a short period, and finally offering the product at the original price as a 'sale', making it seem like a discount.

What is an example of deceptive pricing given in the transcript?

An example given is an Oreo family pack that was regularly priced at $3.5, had its price increased to $5 for a few days, and then decreased to $4.5, which was promoted as a sale price, but was actually 29% higher than the original price.

What is the legal action taken against deceptive pricing as mentioned in the transcript?

The Australian consumer watchdog has sued Coles and Woolworths for deceptive pricing practices, seeking a significant penalty for the conduct.

How prevalent is deceptive pricing according to the transcript?

According to the transcript, deceptive pricing is widespread, with only 1 in 20 Black Friday discounts in the UK being genuine, and over half of products sold by major US retailers being offered at false discounts.

What is the global consumer sentiment towards deceptive pricing as per the transcript?

The global consumer sentiment is negative, with 51% of consumers reporting that they face phony discounts regularly, most commonly in the UK, followed by Mexico, Sweden, Spain, the US, and India.

What are the suggestions given in the transcript to combat deceptive pricing?

The transcript suggests legal routes and preventive measures by governments, as well as tracking and comparing prices using websites that have item price history and price matching tools.

What is the transcript's final advice to consumers regarding discounts?

The transcript advises consumers to be cautious and not rely solely on the advertised discount, implying that they should verify the authenticity of the discount before making a purchase.