Price guide warns of Black Friday ‘fake sales’

Today is the biggest retail day of the year, and bargain shoppers are being warned about fake sales in the lead up to Christmas.

The Black Friday sales get into full swing today, but a price comparison website warns not all prices are good discounts.

PriceSpy tech commentator Tim Provise encourages people to use the free Price Spy app to check out price ranges.

"Say I want to buy a new TV, I'll write that TV in and how big I want it to be and what specs I want in it and it will give you the cheapest prices over all of the retailers."

Provise says "fakes sales" is when shops slowly increase their prices in the lead up to major shopping days to make sales seem more substantial.

“They could slowly start increasing their prices on stuff, Tuesday might be $2, Thursday might be $13, and it will slowly just increase.

“And then, once Black Friday happens or Boxing Day happens, then all of a sudden, a crash happens of the price. So you feel that it’s a 50% off sale, when actually it’s about maybe 20%.”

Black Friday is an event that came out of the United States, starting the day after Thanksgiving celebrations, and is seen as the start of the Christmas shopping season. Provise says New Zealanders spent a whopping $67 million on Black Friday last year.

"It's the rugby world cup for retailers, this is their Super Bowl."

Consumer NZ head of research and advocacy Gemma Rasmussen is encouraging shoppers to do their research.

“Terminology around sale pricing can be very persuasive, but sometimes it can be smoke and mirrors.

“By searching for the product you’re tempted to buy and comparing today’s Black Friday price with historical price data you can discern whether you’re getting a good deal.”

Price tracking of this kettle show one store had a cheaper offer weeks ago. Photo/Consumer NZ

Consumer NZ investigated several retailers and found more than three-quarters of today’s specials could have been purchased for the same price or less in the weeks prior to Black Friday.

“Shoppers assume a product with a sales sticker or discount tag offers a good deal,” says Rasmussen.

“But unfortunately, as our investigation shows, that’s not always the case.”

Popular purchases this year seem to be headphones, kitchen appliances, TVs and portable speakers. Rasmussen warns businesses that specials should be genuine.

“People are battling with their budgets just to stay on top of the essentials, they are more vulnerable to a special. With Christmas fast approaching, many households will be looking to get a bargain deal for the festive season.

“Retailers have a responsibility to participate in fair sales practices under the Fair Trading Act. A big part of that is ensuring that Black Friday promotions offer a genuine saving.”

Watch the full interview with PriceSpy's tech commentator Tim Provise: