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Beware Fake Retail Look-Alike Websites

We are in peak shopping season now and that means scammers are working overtime to steal your hard-earned money.

One technique being used by some crooks is to take out Facebook ads using the genuine front page of a retailer’s circular like this spotted by Trend Micro:

Fake Big Lots ad

When you click that ad or the “shop now” button you are taken to a site that looks like Big Lots.

Big Lots fake website

Scroll down the ad.

*MOUSE PRINT:

In fact, it brought you to BigLotsClearances.com — a site made to look like the real Big Lots site. And if you scroll through some of bargains being advertised, the prices are impossibly low. An electric motor bike for thirty bucks – 90% off? And a canister of Tide Pods less than three dollars? We should be so lucky.

Before you click any Facebook ad, try to determine what URL you are going to be directed to by hovering over the clickable area with your mouse. Beware of look-alike/sound-alike website names. And if the deals on the actual website are simply too good to be true, get off that website quickly just in case it is booby-trapped with a virus.

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FTC: Amazon Had a Secret Tool to Drive Up Prices

AmazonThe FTC and 17 states recently sued Amazon for using its monopolistic power to the detriment of its third party sellers, competitors, and customers.

Amazon uses a number of tactics to punish its own third-party sellers who offer lower prices outside of Amazon.

According to the complaint, the sanctions Amazon levies on sellers vary and can include:

*MOUSE PRINT:

Amazon knocks these sellers out of the all important “Buy Box,” the display from which a shopper can “Add to Cart” or “Buy Now” … Nearly 98% of Amazon sales are made through the Buy Box and, as Amazon internally recognizes, eliminating a seller from the Buy Box causes that seller’s sales to “tank.”

Another form of punishment is to bury discounting sellers so far down in Amazon’s search results that they become effectively invisible.

If a competitor lowers a price, Amazon often lowers its price to the penny to instantly blunt the competitor’s advantage.

Part of its plan to keep prices high involved a covert strategy called “Project Nessie” which the FTC says resulted in Amazon pocketing more than a billion dollars from American’s pocketbooks.

*MOUSE PRINT:

Project Nessie predicted the likelihood that the online store or stores offering the lowest price for a given product would follow an Amazon price increase. Armed with these predictions, [Amazon] increased products’ prices when those price hikes were most likely to be followed [by the competitor]. After Amazon successfully induced the other online store to raise its price, Amazon continued to sell the product at the now-inflated price.

Project Nessie generated enormous profits for Amazon even though its higher prices caused Amazon’s unit sales to decrease. But in 2019 when regulators started snooping around, the company put Project Nessie on hold.

This will be a long, complicated case, and it is anyone’s guess how it turns out and if shoppers ultimately will see lower prices in the marketplace as a result of real competition.

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One Supermarket Makes Digital Coupons Easy to Access in Just-Launched Test

Digital coupons are advertised discounts that require shoppers to individually “e-clip” each coupon they want on the store’s website or app usually before they go to the store. Last year, we highlighted the problem with digital coupons [see original story] at supermarkets because they require having the internet or a smartphone to use. That process effectively shuts out millions of non-tech-savvy shoppers including seniors and low-income folks without such access. And thus they are forced to pay higher grocery prices.

SS digital coupon items

Last November, a coalition of national consumer organizations including Consumer World called on the CEOs of a dozen of the largest supermarket chains to offer an in-store, offline alternative so everyone without electronic access could avail themselves of all the weekly sale items offered at their stores. None of the CEOs responded to us.

Now we learned that Stop & Shop, a leading chain in the Northeast with nearly 400 stores, has just begun a test of a way for all shoppers to easily get all the extra weekly digital discounts without having to use the internet or a smartphone. They are installing a kiosk in select stores right near the main entrance where shoppers simply scan their loyalty card or enter their phone number, and all that week’s advertised digital coupon offers from the Stop & Shop circular will be automatically loaded onto the shopper’s account. No more having to go online to find and individually e-clip the digital coupons you want.

Stop & Shop digital coupon kiosk
See video demonstration

*MOUSE PRINT:

Simplifying all of the above:

Kiosk instructions

That’s all you have to do. The kiosk also provides a printout with special offers for you and a list of some of the digital coupons added to your account. (Suggestion: they need to add all of them to the printout.)

And for those with smartphones, you can check your loyalty card account online to make sure all digital offers have indeed been automatically clipped for you. For example, below you can see that the two digital-only offers shown at the top of this story for chicken parts and ground turkey have been added to MrConsumer’s account just by scanning his loyalty card at the kiosk.

Clipped coupons

We suggest that Stop & Shop and EntryPoint Communications (the developer of the kiosks and its software) simplify the look of the kiosk. There’s too much going on here with multiple signs, irrelevant offers on the computer screen, a product display, and more. The kiosk should, at least initially, simply emphasize to enter your phone number or scan your loyalty card (with a big arrow pointing to the scanner) to get all the advertised digital coupons added to your account. Period.

To their credit, the companies are going to have people posted at the kiosks to guide shoppers though the process of using the system for several weeks after their introduction.

We salute these companies (and those chains that have already adopted kiosks) for stepping up and offering a simple solution to make digital coupons accessible to everyone.