As Black Friday approaches, consumers are inundated with enticing offers, countdown timers, and warnings about limited stock. These marketing tactics aim to create a sense of urgency, but how genuine are these deals? Experts warn that shoppers may be drawn into misleading offers that could lead to poor purchasing decisions.

Black Friday and Cyber Monday advertisements promise significant savings, but they often come with hidden fees, misleading discounts, and false claims of scarcity. Such practices are illegal under Canada’s Competition Act, which aims to protect consumers from deceptive marketing. The Competition Bureau has issued warnings to retailers, both domestic and international, about adhering to these laws.

“It’s illegal to advertise fake discounts by promoting a made-up ‘regular price,’” the Competition Bureau stated in a recent press release. This practice, known as the “regular price” scam, involves retailers inflating prices before a sale and then marking them down to create the illusion of a bargain. The Bureau reports receiving approximately 4,500 complaints annually regarding deceptive marketing, with a notable increase in complaints about inflated prices.

A study conducted by Consumers’ Checkbook, a nonprofit organization, found that many major retailers engaged in deceptive markdown practices in 2025. The study tracked prices at 25 retailers over six months, revealing that companies like Bass Pro Shops, Home Depot, and Michaels often advertised misleading sales. A spokesperson for Michaels stated that the company complies with all applicable Canadian laws and aims to provide value to customers.

Candice Kloes, a Toronto-based lawyer specializing in advertising and consumer protection, emphasized the importance of accurate pricing. “Ordinary selling price is a top priority for the Competition Bureau,” she said. To legally claim a regular selling price, retailers must have sold at least half the volume of a product at that price or higher for a significant portion of the time it has been available. Violations can result in fines of up to $10 million for first offenses and up to $15 million for subsequent violations.

In November 2024, the Bureau launched an investigation into Leon’s and its subsidiary, The Brick, for allegedly using inflated prices and false urgency tactics. While the investigation is ongoing, no conclusions have been reached. “At this point, there is no update on the Leon’s and The Brick Competition Bureau inquiry,” said Audrey Hyams Romoff, a spokesperson for the companies.

Marketing experts note that urgency cues, such as low stock alerts and countdowns, exploit consumers' fear of missing out. Tandy Thomas, a marketing professor at Queen’s University, explained, “We know that scarcity and urgency are really big drivers of what pull people to buy things.” Retailers often tailor advertisements based on consumers' purchase histories, prompting emotional reactions that lead to impulsive buying.

Dynamic pricing, which adjusts in real-time based on supply, demand, and competitor pricing, can further complicate the shopping experience. Grant Packard, a marketing professor at York University, clarified that while companies cannot charge individual customers different prices based on their willingness to pay, they can offer varying discounts to different consumer groups.

To navigate the Black Friday sales effectively, experts recommend that consumers create a shopping list, set a budget, and conduct thorough research. Packard advised, “Come up with a structured approach to shopping so that you don’t overbuy on Black Friday or Cyber Monday.” He cautioned against the temptation to save money on items that may not be necessary.

For those looking to verify prices, various websites offer tools that track price histories on e-commerce platforms like Amazon. These tools can help consumers determine if a Black Friday price is genuinely a deal or if it reflects inflated pricing from previous months.

The Competition Bureau encourages consumers to report any suspected deceptive marketing practices, including misleading sales claims or false urgency cues, through their online complaint form. “Awareness plays an important role,” said Bureau spokesperson Anna Maiorino. “Research options before buying, watch for patterns, and question the claims.”