With Black Friday here this week, the spotlight falls on deceptive pricing tactics – a troubling trend where companies inflate prices just before major sales, only to mark them down, creating the illusion of a bargain. According to a new study by digital marketers SEOProfy tactics like this led to attempts to defraud Americans out of $2.18 billion over the past six years.
Deceptive pricing is a tactic that inflates prices before sales, creating the illusion of a bargain when marked down.
Every Florida resident received $7.38 per capita in refunds, with defrauded victims receiving an average refund of $170.51 each
In Florida, a total of $164,263,895 was refunded to 963,370 residents.
The Federal Trade Commission (FTC) has fought back, recovering billions for defrauded customers through lawsuits. In fact, over the past six years, the FTC has successfully won back $2.18 billion.
As holiday shoppers gear up for deals, these findings highlight the importance of vigilance. Misleading discounts can turn supposed savings into losses, especially when companies rely on tactics designed to deceive. SEOProfy analyzed official FTC data on refunds processed through lawsuits between 2018 and 2023. These refunds were sent directly to consumers by the FTC, without requiring them to take legal action.
Commenting on the study, Victor Karpenko, CEO of SEOProfy said, “Our study covers a wide range of industries, but one thing that services have in common that we can control is terms and conditions.
“We know how daunting they can be, especially for smaller amounts of money, but this is not even about the money. There are more valuable things you could lose that can eventually lead to the FTC granting you a refund, like a data breach jeopardizing your credit score, identity and online security. Please do not wait for greedy companies to get caught after they take your money and possibly put you at risk. Please do not rush into contracts – it can easily cost you more than the time needed to read it carefully.”
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