Many savvy consumers look only to make purchases when products are on sale, or have cut prices, so as to get the best possible deals. One of the easiest ways to find good prices is generally at going out of business sales, as such sales often feature discounts of up to 75%, thanks to the fact that a going-out-of-business sale is based around the need of the seller to liquidate all of its remaining products quickly. This means that many consumers are on the look out for such going out of business sales.
But the unfortunate side effect of consumers understanding that going-out-of-business sales feature very good prices is that it makes such sales a prime source for false advertising/
Often, even when these sales are legitimate end-of-business sales, they are deceptive and employ false advertising because of the nature of the situation when a business does liquidate itself. Most of the time, the business is not in charge of running such a going-out-of-business sale, as it will instead sell off all of its products to third party liquidators; these liquidators then hold the sale, and oft times employ false advertising in order to do it.
Liquidators can and often will raise the prices of products from what they once were with the business itself, up to the manufacturers' suggested retail price, and will only begin to apply discounts at that point. The result is that, even with a so-called 10% discount, a consumer might wind up paying more for a given product than he or she might at another store, without any kind of going-out-of-business sale.
A going-out-of-business sale can also be construed as a form of false advertising, in general, because of the immediacy of the sale which the name implies. A going-out-of-business sale might extend on for months, as again, the business owners themselves do not need to liquidate assets, once they sell to the third party liquidators, who then have ample time to take on the going-out-of-business sale.
Upon seeing an advertisement for a going-out-of-business sale, many consumers will immediately throw themselves into the sale, believing that they must buy products now, or lose out on the sale's prices. The effect is that liquidators can often give poorly discounted prices at first, and consumers will buy up desirable items, regardless. When, finally, liquidators have to start offering genuinely discounted prices in order to sell off their final products, most of the desirable products will be gone, meaning that the discounted prices are not as good as a consumer might have believed.
In general, a consumer would do very well to be wary of any kind of going-out-of-business sale, as such sales often employ more false advertising than one would generally believe.
