The Real Truth About Holiday Sales: Are December Discounts a Scam?
The Real Truth About Holiday Sales: ArHoliday sales are widely heralded as the best time of year for consumers to save money. Department stores, jewelry stores, clothing shops, beauty supply stores, restaurants, and specialty chocolate shops advertise 25–50% off throughout the December holiday season, yet consumer research and regulatory inquiries show that many of these promotions are not truly cost-saving but rather deceptive.
Price anchoring is one of the most common tactics used on holiday sales. Retailers increase the “original” or “regular” price shortly before the holiday season and then discount that inflated price. The final “sale” price may be the same—or even higher—than the price of the item earlier in the year. The Federal Trade Commission warns, “An advertised discount can be deceptive if the reference price was not the item’s price for a reasonable period of time.” In such cases, consumers are led to believe they are getting a bargain when there is no real savings.
Other studies indicate that holiday shopping is also subject to psychological coercion. Time-limited offers, festive advertising, and fear of missing out are used to force impulse purchases and decrease price comparison shopping. Consumer studies found that shoppers were less likely to cross-reference historical prices in December, making them more susceptible to artificially inflated “sale” pricing. Jewelry, luxury items, and seasonal products were particularly susceptible to this practice, as consumers were more likely to assume that these products would be pricier around the holidays.
Consumer advocacy groups have noted similar patterns as well. The Better Business Bureau says that consumer complaints of misleading discounts and unclear pricing increase during the holiday shopping season. Retailers may also be taking advantage of customers while still complying with advertising regulations, due to the consumer’s willingness to assume that there is a higher chance of a sale during this time.
Behavioral economics research also bears this out. Consumers focus on the percentage of discount and not the final price. This phenomenon allows stores to mark up prices and set an illusion of value. A “50% off” label has a high impact even if the original price was jacked up. It’s no wonder so many consumers look at their receipt and wonder “how did I spend so much?”
There are, of course, some legitimate discounts to be had during the holiday season. But overall, most December sales are not great deals. Overballed original prices, pushy marketing, and psychological pressure produce an illusion of savings. Consumers that don’t price check over time may be spending more money than they realize this holiday season. Awareness, price tracking, and informed buying are the best defenses from being caught in the holiday sale fallacy.
Holiday Poster Theme: “Bargain Hunting vs Reality
📉 Best Months for REAL Discounts (Evidence-Based)
🧥 January – February
Best for: Clothing, shoes, winter coats, fitness gear
- Retailers clear unsold holiday inventory
- Demand drops sharply after December
- Discounts often reach 50–70% off (real markdowns)
✔️ This is one of the most reliable times to shop.
🛋️ February – April
Best for: Furniture, mattresses, home goods
- New product lines arrive in spring
- Stores must clear older stock
- Presidents’ Day and spring sales are often legitimate
📺 September – October
Best for: Electronics, appliances, TVs
- New models released in fall
- Older versions discounted to clear shelves
- Better pricing than many holiday “doorbusters”
🎄 What About November–December?
Worst for true savings
- High demand = higher prices
- “Original prices” often inflated
- Discounts are largely psychological (percentage-based)
- Good only for doorbusters or necessities, not general shopping
🧠 Why Holiday Sales Are Usually NOT the Best Deals
According to the Federal Trade Commission and consumer pricing studies:
- Retailers rely on price anchoring
- Shoppers focus on % off, not final price
- Emotional and time pressure reduces price comparison
- Many December “sales” match or exceed regular prices earlier in the year
Evidence-Based References
Federal Trade Commission. (2023). Truth in advertising and pricing. https://www.ftc.gov
Better Business Bureau. (2023). Seasonal shopping and pricing practices. https://www.bbb.org
Kahneman, D. (2011). Thinking, fast and slow. Farrar, Straus and Giroux.
Xia, L., Monroe, K. B., & Cox, J. L. (2004). The price is unfair! Journal of Marketing, 68(4), 1–15. https://doi.org/10.1509/jmkg.68.4.1.42733
Written By: Juram Gorriceta 🥇 The Smart Spending Advisor
Healthcarebeyond 
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