Few online sales tactics are as compelling as the time-sensitive deal. The flash sale is almost as old as shopping, and most retailers have used it to drive out old stock or get more feet through doors. Black Friday hasn’t always helped.
In recent years, e-commerce has leant on the concept outside major sales days, with deals that refresh daily, featuring dramatically struck-out “original” prices, bold red lettering indicating allegedly dwindling stock, and an unmissable “buy now” button that whittles the purchase process down to a few clicks.
These sales have been boons for shoppers who may realise they’re getting last year’s trends or slightly dated tech, but for a bargain.
There are few rules on how stores arrive at those seemingly huge discounts — or if indeed there are “only two left”.
Amazon has long been a proponent, though its local version hasn’t been as enthusiastic. Takealot has run “daily deals” for years. And impulse online buys even led to OneDayOnly, an online store that deals exclusively in this realm.
In most cases, discounted online products make them cheaper than elsewhere on the day — though often not as much as the stores report.
In October, Takealot was selling an LG television for R22,999, which it said had a list price of R31,999 — making this a R9,000, or 28%, discount. On the same day, Hirsch’s and Digital Experience sold the same television for R24,999 and R25,995, down from listed retail prices of R28,999 and R28,995.
Of course, the R2,000 saving is something — but less than Takealot’s claimed R9,000.
Takealot says its listed price is the recommended retail one suggested by the supplier. When the supplier has not provided a recommended retail price, “an estimate may be provided”. Further complicating matters, third-party sellers on the site are also free to provide their own prices.
On the same day as Takealot was selling its LG television, OneDayOnly was selling a JBL Bluetooth speaker for R9,299. It said the list price was R12,800 — a discount of R3,501, or 27%. But Takealot listed the same product, without a special offer, for only R200 more — representing a discount for OneDayOnly shoppers, but one not close to that promised.
In defence of discrepancies, OneDayOnly says: “Retail pricing isn’t exact. Some places charge slightly more for something than other places, some a little less.” To account for this, the store says it takes an average and does “market research on a day-to-day, product-by-product basis” to ensure that its listed retail price, and the saving indicated, are accurate.
Accurate or not, these flash sales work. As with any marketing tactic, there is some onus on the shopper to exercise scepticism.
South African laws and regulations are also somewhat muted. The Advertising Standards Authority of South Africa, the precursor to the Advertising Regulatory Board (ARB), has historically offered the most direct guidance on misstated deals. In 2016, it ruled Takealot had breached the South African advertising code by exaggerating a discount. But membership of the ARB is voluntary and neither Takealot nor OneDayOnly are members, meaning rulings like these are mostly ignored.
Still, the National Consumer Commission (NCC) appears to be taking an increased interest in misstated deals, particularly around big sales days like Black Friday — and it is willing to investigate consumer complaints about misstated pricing.
“The consumers’ right to fair and responsible marketing emphasises how the supplier must market the goods and services on offer,” an NCC spokesperson tells the FM.
Matthew Thomson, director at law firm DML, says the Consumer Protection Act (CPA), which the NCC applies, is the most appropriate legislation. Thomson says the CPA requires that “when a retailer or service provider markets the goods, they must do so in a manner that is not misleading or deceiving, including the condition of the goods, the price at which the goods may be supplied, or the relationship of the price to any previous price or competitor’s price for comparable or similar goods, per sections 29(b)(iii) and 41(3)(f) and 41 of the act”.
Whether the law would act against a slightly misstated deal has yet to be proven. However, regardless of this, it’s clear shoppers will do well to treat many of the said discounts and perceived urgency, especially around big sales days like Black Friday, with healthy cynicism before succumbing to the hype.
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