Retailers Are Faking Sales — Here’s How To Catch Them

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Every year, retailers promise huge holiday sales and door-buster discounts. You’re no Scrooge — you want the best prices possible, and you want to trust that stores are being truthful about the deals they’re offering. We hate to add some bah humbug to your day, but unfortunately, this isn’t always the case. Sometimes, retailers are faking their sales and discounts.

Fake sales trick you into thinking you’re saving big while putting the retailer’s bottom line on the nice list. However, there are some telltale signs that a deal isn’t what it seems. To learn how to spot a fake deal, GOBankingRates talked to Prince Dykes of the Royal Financial Investment Group and Austin Kilgore of the Achieve Center for Consumer Insights.

Watch Out for Bogus “Original Prices”

Dykes advises you to track an item’s price history rather than relying on a retailer’s “original price” — because they very well might be inflating a price just to mark it down and make it look like you’re getting a great deal.

For example, an item that was $80 for most of the year might jump to $160 in early fall. Once the holidays roll around, it’s back to $80 — and the retailer is promoting the price as “half-off.”

Most shoppers can’t monitor prices for months, but tools exist to do this for you automatically. Tools like CamelCamelCamel, Keepa, Honey, or Google Shopping’s price history feature can show how a product’s price has changed over time, alert you to sudden spikes and let you see whether the current “sale price” is actually lower than usual.

Be Wary of Stores That Are Always Running Sales

You’ve probably been told to read the fine print for everything, but Dykes also wants you to pay attention to the pattern of promotions. If a retailer is perpetually advertising that everything is 40% off, it’s likely not a true discount.

“Some retailers run near-permanent promotions,” he said. “The ‘sale’ price is actually the real everyday price.”

He also cautions shoppers to be skeptical of stores that repeatedly use slogans such as “friends and family,” “holiday event” or “new season sale.” If the prices never meaningfully change, the discount isn’t real.

Don’t Buy Into Poor Quality Just To Get a Low Price

Kilgore encourages you to focus on the quality of the items you’re getting for the price. Some items get marked down significantly for the holidays because they’re outgoing models that have been recently replaced or will be updated soon. He’s also concerned that consumers may be getting watered-down versions of products that come with fewer accessories or are made with lower-quality materials.

“There are many tactics retailers use to make shoppers feel like they’re getting a great price, great value or both,” he said.

Look Out for Bogus BOGOs

One common strategy among clothing retailers — especially stores that sell dress clothes — is listing items at a higher-than-market price and then offering a “buy one, get one free” style promotion.

“The final price per suit ends up being reasonable, but most consumers don’t go to the store looking to buy five suits at once and end up spending more than they probably wanted to spend,” Kilgore said.

More importantly, these multi-item promotions can lure you into buying more than you really need or even want, padding the retailer’s total sale — not your savings.

Know the Categories Where “Fake Sales” Are Most Common

Both Dykes and Kilgore say certain categories are especially prone to misleading “deals.” Keep an eye out when shopping for the following:

• Clothing and apparel: “Department stores have long relied on steep discounts of way-too-high list prices to draw in customers,” Kilgore said. “Online, apparel merchants and other retailers will use discount countdown clocks and pop-up messages to create a sense of urgency.”
• Gadgets: “Many types of technology and electronics get frequently updated, leading to manufacturers and retailers offering discounts on outdated models to clear out inventory ahead of a product refresh,” Kilgore said. Retailers also commonly use inflated “original prices” to make clearance prices seem more dramatic.
• Mattresses and furniture: Kilgore joked that the frequency of sales at big mattress chains made him question whether anyone has ever paid full price. Long-running “holiday” or “anniversary” events often mask everyday prices.
• Jewelry and luxury accessories: Dykes warns consumers to watch out for “high margins and use of ‘appraised at’ or ‘compare at’ numbers that don’t reflect actual selling prices.”
• Travel, tickets and experiences: Though travel companies will try to lure you in with language like “only two seats left at this price” or “75% off full fare,” Dykes says these promises often come from rarely used — and frequently outdated — reference rates intended to create a false sense of scarcity.

How To Ensure You Get the (Actual) Best Deal Possible

Dykes has a worthwhile motto: “I never buy on impulse because of a timer.” He doesn’t let urgency persuade him to spend money unnecessarily. Instead, he prioritizes looking up at least one alternative to see if he can get a lower price before he buys — and he always focuses on the total amount he’s paying, not the percentage off he’s supposedly getting.

Comparison shopping is easier than ever thanks to online retail and digital tools. Kilgore suggests checking two or three sites to see the going rate for an item or exploring browser plug-ins that can help you comparison shop (though you’ll want to be mindful of privacy concerns).

He and his wife even turned to an AI chatbot to help them find the best deal on a coffee maker on Black Friday. With a rough idea of what they wanted, he used AI to research options and compare prices.

“The model I chose came in three different versions, each with a handful of meaningful differences,” he said. “The chatbot helped me compare the three versions and found the best price for the one I ended up buying.”

Another simple trick: Google the item and switch to the “Shopping” tab. You’ll see a quick snapshot of prices across most major retailers, letting you confirm whether a deal is real or just dressed up for the holidays.

The Bottom Line

While Kilgore and Dykes want you to get the best deals — real deals, not illusions — this holiday season, they also believe strongly in sticking to your budget. A sale doesn’t save you anything if you spend more than you budgeted for. Smart comparison shopping, a healthy dose of skepticism and a focus on total cost can help you see through misleading promotions and land actual sales you’ll feel good about.

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