They seem to be everywhere—in stores, on television and radio, in online pop-ups and banners and in mailers, flyers and coupons—ads for dazzling discounts and enticing too-good-to-be-true bargains on retail merchandise. And with the holiday shopping season in full force, consumers will be flocking to stores and online sites to take advantage of them.
But consumer watchdog groups like the Council of Better Business Bureaus are warning buyers to approach their holiday shopping wary of scams and rip-offs and urging them to develop a shopping plan with a firm budget and to start well ahead to maximize shopping flexibility.
Attorney General Eric T. Schneiderman, too, has issued an alert on holiday shopping for consumers, warning them to beware because not all advertised bargains are what they claim to be. He cautions that many too-good-to-be-true deals are simply designed to lure consumers into stores and that retailers employ a variety of scams and deceptive sales practices that can lead consumers to make costly mistakes.
“As the holiday shopping season kicks off… shoppers should be wary of so-called sales that are often too good to be true. Consumers should know exactly what they’re entitled to in order to ensure that they’re getting the best deal for their money,” Schneiderman said.
He offers the following tips to find the best deals without falling into holiday season traps:
- A bargain may not be a bargain at all. The “sale” price may have been marked up before it was marked down, voiding the impact of the sale. Consumers should take the time to educate themselves about the pricing of products.
- Be aware of added fees that may negate the value of the sale. Delivery charges and/or other added costs such as assembly fees are often not reflected in the “sale price.” In other cases, a product offered at a certain price may be available only if purchased with other items.
- Compare warranty terms. Make sure you read the terms of any warranty to learn what protections you will receive and how long you will receive them. Warranties could significantly impact the cost of an item over the long-run.
- Know the terms of a layaway plan, including a description of the merchandise to be purchased on layaway plans, the total cost of the items, including all charges, the duration of the plan, the required payment schedule, the consequences of missing payments, the refund policy and the location, if other than the place of purchase, where the merchandise is being stored.
- Check return and refund policies. The law requires all merchants to post their refund policies. “Final sales” or “cash-only – final sale” notices leave you little or no recourse if the merchandise proves to be defective. Be aware that some stores require original packaging and charge restocking fees for returned items.
- Beware of restricted gift cards. Read carefully the terms and conditions of gift cards before purchasing them, and use them early to avoid misplacing or forgetting you have them. It is illegal for merchants to deduct any fees for non-use within one year of purchase or for gift cards to have an expiration date of less than five years from issuance. In some cases, merchants may honor expired cards and withdraw fees upon request.
- Be wary of social network promotions. Consumers on social networking sites are likely targets for holiday ads, promotions and giveaways. Clicking on ads could prompt your device to download an unfamiliar app, which could be malware. In addition, be aware of being directed to unknown third-party websites.
- Be mindful of the websites you visit. Take the time to check URLs to determine whether they are legitimate. Scammers frequently use variants of a known company’s Internet address to lure consumers into visiting fake websites that may look legitimate but are designed to steal personal and/or financial information. Watch out for extra letters or misspellings in the domain name or deviations of the usual “.com” or “.net.” When making an online purchase, verify that you are on an SSL-secured site: the Internet address should start with "https://" instead of the standard "http://."
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[Source: Council of Better Business Bureaus, Attorney General Eric T. Schneiderman]
Photo Credit: Martin Abegglen, via Flickr