The UK consumer group 'Which?' has repeatedly found that many offers during Black Friday sales are not genuine bargains. For instance, a store might claim to reduce a product's price from £500 to £400, even if the product was never sold at the £500 price point.
Last year, none of the deals checked by the group matched the lowest price at which the item had been sold over the previous 12 months.
A similar situation was observed during holiday sales in India. A product that a buyer was anticipating during the Diwali sale could suddenly become more expensive when the promotion started. The 'discounted' price could end up being the same as or even higher than its original cost.
However, the good news is that this should change on Indian e-commerce platforms starting January 1. Under the new rules, when a seller announces a discount, they must also specify the product's 'previous price.' This refers to the lowest price at which the item was sold on that platform within 30 days before the discount announcement.
This provides buyers with an easy way to verify the authenticity of the discount. Without such a rule, it is easy to fall for tricks where large sale signs and huge discounts create excitement.
Other major markets already have similar protection mechanisms. In the US, the Federal Trade Commission asserts that the 'previous price' used in advertising must be a real price. California requires this price to be the usual market price over the preceding 90 days. The European Union introduced a similar rule in 2022, using a 30-day price history, and this rule applies not only to online sellers but also to stores in general.
Experts believe that India should adopt similar measures. Although online shoppers can use websites to track prices to verify an offer's authenticity, if a store places a '60% off' sign on a shirt, there is no easy way to know if it was genuinely sold at a higher price before. The discount should represent a real saving, not just a clever tactic.
