Friday, December 4, 2015

Fake Sale Practices Deceive Customers, Consumer Study Reports

outlet-store-saleSale-priced items usually encourage consumers to take advantage of the “deal” before it goes away. However, according to a non-profit consumer organization, there’s no need to rush.

After an almost year-long investigation of some of the top retail stores in the U.S., the group known as Consumers’ Checkbook found that even significantly discounted “sale” prices are typically the usual store-price.

The “fake sale” independent investigation tracked seven national chain stores along with the largest Internet-based retailer in the U.S. in order to determine if the companies actually offered lower-priced items or if they were simply engaging in “always-on-sale” pricing practice.

Researchers studied online as well as in-store prices on certain items, once a week for 11 months. Of the seven national chains, Consumers’ Checkbook claims that Sears had the “most egregious” fake sale.

According to their price-tracking, Sears offered almost all of the items they were tracking at a sales price for the duration of the study. The consumer organization states that two of the items (KitchenAid mixer and La-Z-Boy recliner) were offered at a sales price 44 out of 44 weeks. A Craftsman self-propelled lawn mower was advertised “on-sale” for 43 out of the 44 weeks, and a Traveler’s Choice 5-piece luggage set was offered at a discounted price 40 out of 44 weeks.

Fake sale researchers report that at the rare time that Sears sold an item at their “regular” price, they were still listed as being “on sale.”

“During these times, Sears simply omitted the item’s regular price”, according to the Consumers’ Checkbook study. Furthermore, researchers state that the “regular” Sears price was only shown during weeks that are generally low-traffic weeks.

Deceptive Pricing Under Scrutiny

Other retailers found to be engaging in deceptive pricing include Kohl’s. The Consumers’ Checkbook study found that eight out of the nine items checked over the course of 11 months, were offered at a “sale” price more than half of the time with four of those items always or almost always listed for a discounted price.

“Although its practices are not as egregious as Sears’ practices, Checkbook.org believes Kohl’s pricing policies are also deceptive and often constitute misleading advertising techniques,” the non-profit organization states.

Best Buy has also fallen under “fake sale” scrutiny with two items always-on-sale, two items on sale half of the time, and the others offered at discounted prices one-third of the time. The study found that Best Buy’s “sale” prices are generally a less steep “discount” that those offered at Sears or Macy’s.

Target was also a part of this fake sale study, and although researchers found that items were on sale up to 47 percent of the time, they state that the discounts were typically fairly small.

Fake Sale Class Action Lawsuit Investigation

Class action attorneys are investigating claims that retailers often use “fake sales” or deceptive pricing practices in order to give the illusion that customers should act quick to purchase an item at a discounted price when in fact the item is always-on-sale.

If you purchased a “sale” item at Kohl’s, Best Buy, Target or Tiger Direct in California only to discover that the item is sold at that price the majority of the time, you may have legal claim. One of our attorneys will gladly discuss your legal options regarding the fake sale investigation at no cost to you. 

Join a Fake Sale Class Action Lawsuit Investigation

If you purchased an item on sale at one of the following retailers, you may qualify to join a free class action lawsuit investigation:

  • Best Buy
  • Kohl’s
  • Target
  • Tiger Direct

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