Fake Discounts, Black Friday Sales, and Coffee Industry Challenges

In 2018, the ACCC successfully sued Kogan, a large Australian online retailer, for misleading consumers during its “Tax Time” sales promotion. The company advertised 10% discounts while secretly increasing prices on more than 600 products—sometimes by more than 10%—just before the sale.

This case highlights a broader issue: the culture of fake sales in Australian retail.

The Problem with Perpetual Sales

Many industries rely on constant “discounts” to drive purchases.
Recommended retail prices (RRPs) have become meaningless, with goods perpetually on sale.
Consumers are trapped by misleading practices, and regulators like the ACCC are right to call it out.
Shopping centres are filled with permanent red “Sale” signs, with only a few brands (Apple, Dyson) resisting the trend.

Choice Investigation – Espresso Machines

Consumer group Choice tracked four espresso machines across 13 retailers for six months.

Prices fluctuated during COVID.
Black Friday discounts were not the cheapest overall.
The best deals often occurred outside major sales events.

This shows that Black Friday and Cyber Monday (BFCM) hype doesn’t always deliver genuine savings.

Black Friday vs Traditional Sales

BFCM now surpasses Boxing Day and End‑of‑Year sales in value.
Timing before Christmas makes BFCM attractive for gift buyers, but it's starting almost a month before the official day leading to consumer fatigue.
Retailers use BFCM to clear obsolete or excess inventory, especially electronics and white goods.
Supply chain shortages and higher freight costs mean fewer retailers can afford deep discounts.
Many join BFCM out of FOMO (fear of missing out) rather than genuine strategy.

Service Industries Join the Bandwagon

Surprisingly, even service providers now run Black Friday promotions:

Accounting firms.
Garden maintenance companies.
Other non‑retail businesses desperate to leverage the hype.

Coffee Industry and Black Friday Discounts

In 2021, rising raw coffee prices nearly doubled, creating financial strain for roasters and suppliers.

Despite cost pressures, some coffee companies still joined BFCM sales due to peer pressure and FOMO.
Social media was flooded with noisy promotions.
Retail prices of up to $75 per kilo of coffee stretched credibility.
Many brands ran two‑speed pricing models: charging high retail prices while offering competitive wholesale rates.

The Risk of Fake Discounts in Coffee

Customers enjoy discounts during sales events, but what happens when prices return to lofty RRPs?
Loyalty depends on consistent performance and value, not gimmicks.
Coffee companies risk alienating customers if post‑sale pricing feels unfair.