Recently it was published that China accuses Wal-Mart of “deceptive prices”. What does it mean? And how can we ensure that we don’t fall into the same pit?
What does it mean? What are the Chinese so upset about?
Well, the problem is the pricing model Wal-Mart and other retailers had adopted in China. When they advertise a discount (and in China, they advertise as “75% of the original price”, not “25% discount as we’re used to), they use much higher original price than it is in reality.
In the example given, the discounted price of $7.7 was based on the original price of $25.66 – that’s 70% off. But, the authorities proved that the actual original price was $18.07, so the discounted price should have been %5.42. $1.3 difference per item.
So could this happen here, in the US? It could, most definitely. I’m guessing it does. We don’t have any strong consumer protection agency, certainly not government agency. Hopefully the CFPB will fill this void.
So how can you ensure you’re not getting scammed in such a manner? You can’t really. What you can do is shop wisely and compare prices. If you see an item with “original price” of $50 when in every other place the same item sells for $25 – you’re being scammed.
Beware, shop wisely, and enjoy your shopping,
Your Little Advisor.