Warning over end of financial year sales as shoppers urged to avoid traps

Shoppers are being warned to stay vigilant as end of financial year (EOFY) sales flood the market, with consumer experts revealing the hidden traps behind seemingly irresistible deals.

Discount signs are everywhere, with businesses promising massive savings on everything from clothes to tech.

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Consumer group Choice said there are actual deals to be found, but not every one is as good as it looks on the surface.

“The end of financial year sales can be a great time to get your hands on that slick new appliance for your home but with many retailers competing for your cash it’s important to know the tricks and traps to avoid getting ripped off or accidentally purchasing a dud product,” Choice spokesperson Mark Serrels said.

One of the biggest pitfalls is buying something just because it is on sale.

Messages like “exclusive offers”, “sale ends soon” or “only one left” are designed to create pressure and promote panic buying, preying on consumers’ fear of missing out.

“Remember, the EOFY is just one sales period,” Serrels said.

“Last year, we saw sales extended into July, so it’s better to take time to do research to ensure you’re grabbing a good bargain.”

Discounted duds

For businesses, end of financial year sales are a strategic way to clear old and poor-performing stock.

“We’ve seen numerous products that performed poorly in our tests having big discounts during the sales,” Serrels said.

Experts advise shoppers to check reviews and compare products, not just prices, before making a purchase.

Shoppers should also watch out for dodgy warranties that will sting at the checkout.

Many provide little benefit beyond protections shoppers are already entitled to under consumer law.

Online shoppers need to be extra cautious during this period.

Scammers often create fake retail websites during major sales events that are designed to steal money and personal information.

“Fake websites have become far too common and when you’re making a purchase that might seem like the real deal, we advise you to double-check before adding it to your cart,” Serrels said.

“Look out for things like unusual URLs, poor spelling, or massive discounts, which signal red flags.”