Endless “Everything Must Go” Sales May Soon Face Regulations
Walk past some rows of heartland shops and you’re sure to find at least one with huge sales banners hanging everywhere.
“Fire Sale” and “Everything Must Go” claims are endless, as the same signs appear to stay up forever.
Misleading marketing tactics? Consumers and authorities seem to think so, as talks are underway for stricter regulations on the matter.
Endless sales count as unfair practice
The most common culprits of endless sales are discount stores like ABC Bargain Centre or Value Dollar Shop.
Investigations by the Consumers Association of Singapore (CASE) and the Competition and Consumer Commission of Singapore (CCCS) revealed that these stores often hold sales that last for over a year, with some as long as 2 years or more.
Such an act counts as unfair practice, as businesses promote items or services supposedly for a fixed period of time, but keep them on sale for far longer.
As a result, consumers end up doubting whether their purchases were really on sale at all, since prices remain low.
Not only do the false claims mislead consumers, they also give an unfair advantage against other businesses.
New guidelines on price transparency
To curb the problem, CCCS is coming up with a set of guidelines for price transparency, according to a report by The Straits Times.
While talks are still ongoing, the general aim of the guidelines is to regulate business practices in the following areas:
- Discounts
- Free product offers
- Price comparisons
CCCS will also consult the public for their opinions on measures that can be taken.
The guidelines are meant to merely keep businesses in check, instead of outright punishing them, as it’s understood that the endless sales may be circumstantial.
For example, a store may have plans to close down, but the inability to find a new tenant could delay the process, hence forcing them to stay open.
Everything should ideally go within a few months
For now, stores should adhere to the most basic rule for clearance sales — have them only between a few weeks and a few months, not more than that.
The ideal duration depends on the nature of the business, according to retail experts.
Let’s hope that misleading sales will become less of a norm as authorities gradually release the guidelines. None of us would want to second guess our expenditure, especially after a massive shopping haul.
Featured image adapted from Mond’s Blog.
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