Behind the Tag: The Truth About Deceptive Pricing

By Neeti Daryapurkar

Deceptive pricing is a pricing strategy used by businesses to deceive consumers into believing they are paying a lower price for goods than they actually should. It can take many forms, from hidden fees to misleading sales tactics that make products appear cheaper than they really are. This practice is illegal in many jurisdictions and can result in severe penalties.

The most common form of deceptive pricing is “Bait and Switch”. In this tactic the retailer advertises a product at an extremely low price to attract customers, but when the customer tries to purchase it, the product is unavailable, or they are pushed to buy a more expensive item instead. Another tactic that marketers use is “Hidden Fees”. In this the product or service is advertised at lower price, but the final cost is much higher as additional fees are added to the bill upon purchase. There are a lot more of these types of tactics which are used to lure the customer.

Deceptive pricing being an irrational activity, not only affects the financial state of the customer but also develops a loss of trust among them. If the customer realises that they are misled in any way then their loyalty towards that particular business may decrease.

To protect yourself from deceptive pricing, always read the fine print before making a purchase. Check for hidden fees, confirm any discounts or sale prices. Don’t hesitate to ask questions about pricing policies, and consider using price comparison from websites or apps to verify deals.

By becoming a more informed consumer, you can avoid falling victim to such practices.