IMMEDIATE RELEASE
“Let’s make this the last Black Friday when people lack the tools they need to control spending” – Money and Mental Health statement on Black Friday
27 November 2024 – Regulators and retailers should act now to help people with mental health problems manage spending and avoid financial harm this Black Friday, and in the run up to Christmas.
That is the call from the Money and Mental Health Policy Institute, the charity which was founded by Martin Lewis (MoneySavingExpert).
Research from Money and Mental Health (1) has shown that flash sales and pushy selling tactics from retailers can make it extremely difficult for people with mental health problems — many of whom struggle with symptoms such as impulsivity — to stay in control of spending.
In particular, the charity’s analysis shows that easy access to ‘buy now pay later’ options and one-click purchasing — coupled with retailers’ use of personalised recommendations and notifications — can drive people with poor mental health to spend more than they can afford online.
That risk is heightened during flash sales like Black Friday, and the debts incurred can have a long lasting impact. It can take years to become debt-free, which can in turn make it much harder to recover from a mental health problem.
Money and Mental Health’s research shows that:
- Consumers with poor mental health are twice as likely than the wider population to have spent more than they can afford online, or to have purchased goods they don’t need.
- Half (54%) of people with recent experience of a mental health problem said that that online shopping sites make it too easy to spend more money than you can afford
- Over half of UK adults (56%) who have used ‘buy now pay later’ services say that this option makes it too easy to get into debt.
What needs to change
Rules from the Competitions and Markets Authority (CMA), the government’s consumer watchdog, forbid retailers from misleading or putting undue pressure on people to make purchases.
Money and Mental Health is calling on the CMA to issue a statement making it clear that it is prepared to use its powers to clamp down on retailers, where it sees examples of pressure selling tactics.
In the longer term, the charity is also urging retailers to take measures to help people stay in control of spending. These could include the choice to opt out of ‘buy now pay later’ options, or to add a ‘cooling off’ period to their account before making purchases.
Helen Undy, chief executive of the Money and Mental Health Policy Institute said:
“Flash sales, Black Friday ‘deals’ and short-term offers can be hard to resist at the best of times. But when you’re struggling with your mental health it can be extremely difficult to stay in control of spending. A single day’s shopping spree can cause years of misery, especially for people already dealing with both money and mental health problems.
“That’s why we’re calling on the CMA to make it clear that it will take action if it sees retailers using marketing techniques or misleading information to ramp up the pressure for people to spend this Black Friday and Cyber Monday, and in the run up to Christmas.
“But it’s also really important that retailers take simple steps to help people to stay in control, like offering a ‘cooling off period’ before making purchases, or a way to opt out of ‘buy now pay later’ payment options. We want this to be the last Black Friday when people lack the tools they need to manage their spending and avoid financial harm”
ENDS
To set up an interview or for any other media enquiries, please contact Alex Goodfellow, External Affairs Officer at Money and Mental Health, on 07935 216 804 or [email protected]
Notes to Editors
- This analysis and the stats quoted here are from the Money and Mental Health report Convenience at a cost: Exploring the aspects of online shopping that are putting those experiencing mental health problems at risk of financial harm.
About the Money and Mental Health Policy Institute
The Money and Mental Health Policy Institute is an independent charity set up by Martin Lewis, and committed to breaking the link between financial difficulty and mental health problems. We conduct research, develop practical policy solutions and work in partnership with both those providing services and those using them to find what really works. www.moneyandmentalhealth.org
We have written about the potential impact of changes to the Work Capability Assessment on people with mental health problems in this blog.