Business

Traders warned against deceptive pricing strategy

October 7, 2019 10:12 am

The Fijian Competition and Consumer Commission are warning traders to stop using deceptive pricing strategies to persuade consumers to buy products.

With Diwali just around the corner, retailers often advertise huge discounts on household items, groceries, and even clothing.

But the FCCC has discovered these discounts are fake in many cases and consumers are being duped by misleading advertisements.

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FCCC Chief Executive Joel Abraham says through their own investigation and surveillance, they’ve found evidence of fake discounts in the recent past.

“Previously what we’ve noted is there was an instance where washing machines were advertised as ‘was $500 now $250’. We went back to the system and looked back to when was the last time it was sold for $500- and we noticed that it was never sold for $500. In fact, it was about $260 and then the price was hiked two months before the festive period to $500, nobody bought it for $500 and slashed down and people came in and bought about 12 or 13 pieces, thinking they’re getting some sort of saving.”

Shoppers are also being urged to remain on high alert at all times, as laxity on their part often makes them fall victim.

“People who are coming and buying on high-purchase, the first thing they’ll ask is when will this item be delivered. Not about reading the documents. You’ll generally see a trend where the salesperson will come and say you need to sign on three or four pages – people generally don’t read it.”

The Consumer Council Chief Executive Seema Shandil says they’re also continuing their market surveillance.

“Because it comes cheap, what consumers do is they go and buy their product in anticipation that it is going to last long, but however as soon as they buy it and take it home they see that within few days their product becomes default or defective showing that the product is not of the quality that it should be of.”

While the two regulatory bodies are doing their best to protect consumer interests, shoppers are urged to exercise their responsibility while shopping this festive season.