How Price Tags Lie

By Syed Mudasir Mushtaq 

The recent rise in festival sales and the surge in advertising across social media platforms often lead consumers to believe they are receiving significant discounts. However, the Maximum Retail Price (MRP) display may not accurately represent a product’s true value, creating a “decoy effect” where consumers perceive the offer as more beneficial than it truly is. The truth behind the tag: festival sales and social media ads often mislead with inflated MRPs. Some brands or retailers artificially raise the maximum retail price (MRP) of products, then offer “discounts based on the inflated price. This practice makes discounts look more appealing than they actually are, leading consumers to believe they are getting a great deal when, in reality, the product may still be overpriced. Advertisers particularly on social media may use “decoy pricing” by introducing a product at higher price print alongside discount items that seem more attractive in comparison, influencing buyers’ perception and nudging them towards products they might not have otherwise chosen. Sales that claim to be for limited time only can create urgency, pushing consumers to buy quickly without comparing price. In reality, these deals are often extended beyond the advertised timeframe or reappear shortly after. Hence, the urgency is artificial. 

Many ads on social media leverage influencers who may not disclose paid partnerships, leading consumers to believe the recommendations are genuine. Influencers often promote products as “must -haves” with “amazing discounts, “creating a perception of quality or necessity that may not be accurate. Some festival sales offer bundled deals -multiple items at lower price – while the saving is minimal or nonexistent compared to buying individually. Consumers might feel compelled to buy more because they think they are getting better value even though this might not be the case. These practices exploit consumers’ psychology, creating a perception of value or scarcity that doesn’t reflect the product’s real worth. 

Recently, social media has seen an increase in deceptive tactics where some advertisers or influencers intentionally break or damage items, creating exaggerated or staged scenarios purely for the sake of gaining attention or promoting products. These staged “dramas” are often designed to manipulate viewers’ emotions, making them believe that the product is essential or has special qualities that solve problems or prevent issues like those shown. This tactic misleads consumers by creating a false sense of urgency or need, and ultimately, it skews perceptions of the product’s actual usefulness or quality. Such practices not only deceive potential buyers but also erode trust in advertising and social media promotions. 

Recently, a troubling trend has emerged on social media where fake online stores showcase popular branded items at unusually low prices to attract unsuspecting buyers. Once an order is placed, consumers are often shocked to receive empty boxes, poor-quality knockoffs, or completely unrelated items instead of what was advertised. To make matters worse, these fraudulent sites typically have no recognized return policies or customer support, leaving customers with no way to get a refund or return the items. This practice not only leads to financial loss for consumers but also damages the reputation of genuine brands as fake sites continue to exploit their names for profit.

Consumer’s Responsibility:

Consumers have a responsibility to make informed choices and protect themselves, especially in an environment with rising cases of misleading advertising and fraudulent online practices. Key responsibilities include:

1. Research Before Buying: Consumers should take time to research the product, seller, and 

website. This includes reading reviews, comparing prices, and understanding the product’s specifications and return policies.

2.  Avoid Impulsive Purchases: Responsible consumers are cautious about “too-good-to-be-true” deals and avoid making hasty purchases, particularly from unfamiliar sites or during flash sales that create artificial urgency.

3. Verify Authenticity: Checking for authenticity is essential, especially with branded items. Consumers can look for official brand websites or verified retailer partnerships to ensure they are buying genuine products.

4.  Understand Rights and Policies: Consumers should be familiar with their rights, such as return and refund policies, warranty information, and privacy policies, especially when buying online.

5. Report Fraudulent Activity: If consumers encounter fake or misleading ads, reporting them to appropriate consumer protection agencies or platforms can help prevent others from falling victim to scams.

By taking these steps, consumers not only protect themselves but also contribute to a more transparent and reliable marketplace

Role of Government:

Last but not least, every citizen, young or old, rich or poor is a consumer of some goods or services from the time of his/her birth to death, It is therefore, necessary that every consumer not only gets a full measure of the value for money he/ she spends, but also that his interests are fully safeguarded. As enjoined in the constitution of India, Government has to play a vital role in protection and empowerment of consumers. Government should ensure establishment of an effective and responsive administration which is not only citizen friendly but it is also transparent and accountable. It should evolve various consumer related policies and activate the Consumer Affairs Departments, not in the shape of toothless tiger but entrusted with authority to play an essential role in safeguarding consumers through protection, enforcement and awareness initiatives. The FCS & Consumer Affairs Department is a conspicuous example and has played a standout role not only in protecting consumers and regulating markets but also in generating substantial revenue through fines imposed from erring marketers. 

The aim of this article is not opposing business or the pursuit of livelihood; however, to emphasize the importance of valuing consumers’ money. Earning a profit is legitimate, but it should be balanced with fair pricing, quality assurance, and transparency. By respecting the true value of money, businesses can build trust with consumers, fostering a marketplace where both parties benefit. This perspective encourages ethical business practices that prioritize long-term relationships and consumer satisfaction over short-term gains.

Views expressed in the article are the author’s own and do not necessarily represent the editorial stance of Kashmir Observer

• The author is PG. Pub. Administration, Dip. Consumer Protection/Food Safety

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