Holiday shopping is hitting new highs again. Americans spent a record $11.8 billion online on Black Friday 2025, up 9.1% from last year, according to Adobe Analytics data reported by Reuters. The National Retail Federation expects holiday sales to top $1 trillion for the first time in 2025.
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That doesn’t mean shoppers feel carefree. Deloitte’s 2025 holiday survey found consumers expect to spend $1,595 on average, down 10% from 2024, while 77% expect higher prices on holiday items.
So, I used ChatGPT the way many people are using artificial intelligence this season: as a quick shortcut to brainstorm gift ideas. Then I flipped the prompt and asked for the opposite — gifts to skip because they’re overpriced, risky or likely to turn into a financial headache.
Below are the “bad buys” categories that kept appearing across prompts like: “What holiday gifts are low value?” “What gifts create hidden costs?” “What gifts are unsafe for kids?” and “What gifts are most likely to be returned?”
Gifts You Can’t Afford Unless You Finance Them
ChatGPT’s most consistent advice: If you’re considering “buy now, pay later” or carrying a balance to make it happen, it’s a signal to downshift.
That warning looks even more relevant this year because FICO announced credit scores that incorporate BNPL data. In other words, missed payments are less likely to stay “invisible.” Consumer advocates also warn BNPL can make unaffordable purchases feel cheaper than they are, especially when shoppers stack multiple promotions.
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‘Too Good To Be True’ Deals From Unfamiliar Sites or Social Ads
When I asked ChatGPT what to avoid during deal season, it kept flagging the same trap: off-brand sites that pop up through social ads with unbelievable prices on brand-name items.
The FTC is explicit about holiday shopping scams and recommends steps like researching the seller, paying with protection and avoiding payment methods scammers love.
Cheap Lithium Battery Products or Knockoff Chargers
ChatGPT was blunt about rechargeable gadgets: Cheap batteries and off-brand chargers can be a safety risk. That lines up with recent safety warnings. The CPSC tells consumers to stop using certain e-bike batteries due to a fire hazard, citing reports of fires and property damage. For chargers and batteries, it’s best to stick with the manufacturer or reputable third-party brands — look for credible safety certification markings.
Kids’ Gifts With Accessible Button Batteries or High-Powered Magnets
If you have small kids in your life, this was a clear “avoid” category by ChatGPT.
The CPSC has issued recalls for toys that violate mandatory standards related to button batteries. One example: A recalled doll set where a child could access button cell batteries, which can cause severe internal burns or worse if swallowed.
Magnets are another repeat hazard. The CPSC recalled magnetic fidget spinner sets because of the risk of ingestion.
Gifts That Are ‘Personal’ When You’re Guessing
ChatGPT called out the classics: fragrance, cosmetics, clothing and shoes when you are guessing about scent, shade or size. Returns are a big part of the reason. NRF projects $849.9 billion in total returns in 2025 and estimates 19.3% of online sales will be returned.
Pets as Surprise Gifts
ChatGPT’s answer here was nuanced: Don’t surprise someone with a pet unless you are certain they want one and can care for it. The ASPCA’s position statement is similar. It says pets should only be gifts to those who have shown a sustained interest and ability to care for an animal responsibly.
A Practical Way To Use ChatGPT Without Getting Talked Into Bad Buys
ChatGPT is best as a checklist tool, not a final decision-maker. If you use it, try prompts that pressure-test your cart:
- “What are the hidden costs of this gift?”
- “What could make this hard to return?”
- “Is there a safety risk with batteries, magnets or small parts?”
- “What is a lower-cost alternative that still feels thoughtful?”
That last question matters in 2025. With holiday sales expected to surpass $1 trillion, it is easy to confuse “everyone is spending” with “I should spend more.” The smarter move is to avoid gifts that create debt or spark returns — put your budget behind gifts that will land.
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This article originally appeared on GOBankingRates.com: I Asked ChatGPT What Christmas Gifts To Avoid: Here’s What It Said
