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AFP

Australia's consumer watchdog has issued a warning to shoppers ahead of the Boxing Day sales, urging them to be cautious of misleading online discounts.

A recent sweep by the Australian Competition and Consumer Commission (ACCC) revealed some retailers were using deceptive "site-wide" discount claims and inflated "was/now" prices, reported News.com.

The ACCC investigated online Black Friday deals and found many retailers promoting discounts that weren't real, including offering "site-wide" sales where some items were excluded, or the deals only applied to members.

The watchdog reported that Australian shoppers expressed concerns over "was/now" pricing, with many claiming that prices were inflated right before the major sale period.

"We know that many consumers rely on sales to save money when shopping for products, especially during this time of cost of living pressure, and when people may be seeking to save up for holidays and festivities," commission deputy chair Catriona Lowe said. "Retailers must not seek to take advantage of this by misleading consumers."

Some stores used the phrase "up to X% off," even though few products had that full discount.

The commission also flagged the use of "recommended retail price" (RRP) as a base price for advertised savings, warning this can be misleading if the product hasn't been sold at the RRP recently, Sky News reported.

As the Boxing Day sales approach, the ACCC continues to monitor pricing practices and is reminding businesses that Australian Consumer Law prohibits them from making false claims about prices and discounts.

"We are further considering some of these examples for investigation and action, and the ACCC has already asked a number of retailers to justify their advertising claims," Lowe said. "In the meantime, we are warning retailers ahead of post-Christmas sales that they must comply with Australian Consumer Law in all the claims they make."

The ACCC's warning followed a concerning report from The Salvation Army, which found that 29.9% of Australians "will struggle to pay their rent or mortgage this Christmas." The report also revealed that one in five people has had to skip medical care to afford Christmas expenses.

Additionally, 1.9 million Australians were expected to seek help from charities this holiday season, with 54% doing so for the first time.

"It is truly heartbreaking to see the despair and devastating decisions Australians are having to make in order to provide for their families this Christmas," Major Bruce Harmer from The Salvation Army said.