70% of sales announced in online shopping for Black Friday 2023 were false
The Ministry of Social Rights, Consumption and the 2030 Agenda states that 70% discount which were announced by e-commerce operators during Black Friday last year violated consumer protection rules by being False or misleading discounts.
This is one of the findings of a study by the Internet Consumer Observatory, a ministry project launched by the Directorate General of Consumer Affairs and released on Black Friday this year.
In many cases, proposals did not comply with consumer protection regulations, especially those related to unfair business practices and with the indication they made of price reduction. And they were always advertised more profitably than they actually could have been.
The study was conducted from September 23 to December 20, 2023 to test price evolution before Black Friday, to see if the cuts happened and it was extended until the end of 2023 to see if they were maintained or not.
Violations detected
In total, more than 800 discounted products were analyzed, advertised by 19 marketers from different sectors. The ministry noted several types of violations.
First of all, a reference price manipulation. 70% of the products did not comply with the regulations on the indications that must be made in prices, since the reference price (the one on which the discount should be indicated) was not the lowest in the last 30 dayswhich is what the law says.
It was also noted that price reductions due to codes or from coupons accessible to the general public, have been hacked by approximately 65%. Products were offered at a certain price, which was artificially raised, and discount coupons were provided, creating the perception that they were being priced at a bargain.
Moreover, in 50% of cases potentially misleading statement related to price, for example “today only” or “offer valid for the next 24 hours” when it was later revealed that it would cost the same in the following days.
Finally he saw misleading price comparison without using reference price. According to this study, it was and is common practice to use prices other than the reference price, such as retail, suggested price, or other similar prices, to create the impression that there has been a price drop.
Consumo added to this investigation another investigation that resulted in sanctions being imposed on eight e-commerce operators who allegedly engaged in similar practices during the last Black Friday.