Consumer Trust in Black Friday Deals Wanes: CCPC Reports Only 30% Believe Discounts Are Genuine
Most consumers do not trust Black Friday deals, according to research by the Competition and Consumer Protection Commission (CCPC). Only 30% believe discounts shown by businesses are real.
The report comes out just before Black Friday on November 29 and Cyber Monday on December 2. Interest in these sales has decreased. Only 36% of surveyed people plan to shop during the sales, lower than 45% last year.
The CCPC warns that time-limited offers can lead to unplanned purchases. Nearly half of respondents reported regretting such impulse buys. Grainne Griffin, Director of Communications at the CCPC, encourages shoppers to plan ahead, create lists, stick to budgets, and check return policies. She also advises online shoppers to buy from established businesses in Ireland or the EU.
In 2022 and 2023, electronics topped the spending list during the sales. This year, clothing, footwear, and jewelry are more popular, with half of respondents intending to purchase these items.
Young people are more susceptible to sales tactics and often trust advertised discounts. They typically do not research prices, making them vulnerable to misleading offers. Over 80% of Black Friday shoppers plan to research discounts, especially those over 45.
What are the key concerns consumers have regarding Black Friday deals this year?
Interview with Grainne Griffin, Director of Communications at the Competition and Consumer Protection Commission (CCPC)
Interviewer: Thank you for joining us, Grainne. Recent research by the CCPC indicates that trust in Black Friday deals is declining. Can you explain the findings?
Grainne Griffin: Absolutely, it’s concerning to see that only 30% of consumers believe the discounts advertised during Black Friday are genuine. This research highlights a significant skepticism among shoppers towards promotional offers, particularly as we approach Black Friday on November 29 and Cyber Monday on December 2.
Interviewer: Interesting. There seems to be a decrease in consumer interest this year, with only 36% planning to shop during the sales. What do you think is driving this trend?
Grainne Griffin: The decrease in interest could result from a combination of factors, including the growing awareness of misleading advertising practices. Consumers are becoming more informed and cautious, particularly regarding time-limited offers that can lead to impulse purchases. Nearly half of the respondents reported regretting such purchases, which contributes to overall skepticism.
Interviewer: What advice does the CCPC have for consumers participating in these sales?
Grainne Griffin: Our primary advice is to plan ahead. Consumers should create shopping lists, stick to their budgets, and carefully check return policies before making purchases. It’s crucial to prioritize transparency; we encourage shoppers to use established retailers, especially those operating within Ireland or the EU.
Interviewer: It seems there is a shift in what people are prioritizing this year. Can you tell us more about the trends in consumer spending?
Grainne Griffin: Certainly! While electronics have topped spending lists in previous years, this year we are seeing a significant interest in clothing, footwear, and jewelry, with about half of respondents indicating they plan to purchase these items. This shift is noteworthy and reflects changing consumer priorities.
Interviewer: Young shoppers seem particularly vulnerable to misleading offers. Why is that?
Grainne Griffin: Younger consumers often exhibit trust in advertised discounts and may not conduct extensive price research, making them more susceptible to sales tactics. In contrast, older shoppers—particularly those over 45—tend to be more diligent, with over 80% planning to research discounts thoroughly.
Interviewer: How important are payment methods during these sales?
Grainne Griffin: Payment methods play a significant role in the shopping experience. Our research indicates that 84% of shoppers prefer using debit cards. Interestingly, while credit cards are more popular among older demographics, younger consumers exhibit a preference for cash, with 45% of those aged 15-24 opting for that method.
Interviewer: Lastly, can you touch on the pricing display rules that consumers should be aware of?
Grainne Griffin: Of course. It is critical for retailers to comply with price display rules, which require them to show the “prior price” when advertising discounts. This prior price must reflect the lowest price in the 30 days leading up to the discount. Approximately two-thirds of consumers are aware of these rules, and it’s essential for businesses to provide genuine and clear pricing to aid fair comparison among options. The CCPC is vigilant about misleading practices and will not hesitate to take action.
Interviewer: Thank you for sharing these insights, Grainne. Your guidance will undoubtedly help consumers navigate the upcoming shopping season more effectively.
Grainne Griffin: Thank you for having me. It’s vital for consumers to be informed and cautious during these sales, and we’re here to support that.
Debit cards are the preferred payment method, used by 84% of potential shoppers. Credit cards are favored by older groups, with 28% of those aged 45-54 and 24% of those over 55 planning to use them. Cash is popular among the 15-24 age group, with 45% opting for this method.
The CCPC reminds consumers of price display rules. Retailers must show the “prior price” when advertising discounts. This prior price must reflect the lowest price in the 30 days before the discount starts. About two-thirds of surveyed consumers know these rules.
Consumers need clear and accurate pricing to compare options effectively. The CCPC insists that businesses display genuine discounts honestly and will take action against any misleading practices.