Summer sales are looking bigger than ever and no doubt there are some real bargains out there if you can take advantage of them. You can make really good use of such sales to get ahead of your gift-buying for the coming year.
However, you do have to be a bit careful to make sure you are getting a true bargain. This is where the
Fair Trading Act comes in. It prohibits misleading and deceptive conduct by traders, and has an impact on what traders can state about the goods and services they offer “on sale”.
The Act covers misrepresentations made in brochures or leaflets, in store displays and signs, as part of a sales pitch and in TV, radio, newspapers and other advertisements.
What to look out for
- If a store advertises an “Everything 50% off” sale, all its stock must be half price.
- If a store advertises “Up to 50% off”, a reasonable number of items must be 50% off, not just one or two – this can be viewed as enticing you into the store by the use of misleading advertising.
- Also, when advertising the sale, the store must have reasonable stocks available of the reduced items or indicate the quantity they have available.
Such advertising, without sufficient stock to meet likely demand, is called “bait advertising” – you shouldn’t arrive an hour after the doors open on the first day of a sale only to find the store had few items reduced and they are already sold out.
- When it comes to stating prices, the store must not mislead you about the true price relative to the sale.
The store cannot raise its prices before the sale and then quickly lower them again making you think that you’re getting a special when really, the goods are normal price. If a store advertises goods as “was $49.95 – now $39.95”, the normal price must be $49.95.
See our page about pricing which outlines other situations where the stated price may cause a problem
The Fair Trading Act
The Fair Trading Act applies to all aspects of the promotion and sale of goods and services. Have a look at our Consumer page to see what the Act covers.
If you believe a trader has breached the Fair Trading Act and you want to do something about it, your first call should be to the trader. This is good practice whenever disputes happen. Go back to them and discuss the problem you have with the sale – you may be able to come to an agreement over how the issue can be resolved. If you can’t come to a verbal agreement and want to take the matter further, it is a good idea to address your problem to the manager of the business – a letter may have more impact and be more effective than a phone call or visit.
Disputes Tribunal
If you can’t sort things directly with the trader, you may choose to take a claim to the Disputes Tribunal. Before taking that action, you need to consider the amount of money involved, the cost to you and the strength of your claim from the evidence you have.
Another Option
Even though it can’t help you with your individual claim against a trader, if you believe that a sale “bargain” wasn’t what it claimed to be, you can report it to the Commerce Commission. The Commission, which enforces the Act may prosecute the offending business if it considers that a breach has occurred.
You can talk to us
If you would like to talk to us about any consumer issue or any other problem you don’t know how to tackle, call in for a chat with our trained volunteers– we are happy to discuss any matter at all and our service is free, independent and confidential.
Find your nearest Citizens Advice Bureau
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(Note that Bureau opening hours may be reduced over the Christmas period)