You May Be Paying Full Price for a Fake Discount

Have you ever shopped online and seen an item advertised at a significant discount, and thought you were scoring a major deal? It is possible that “regular price” was never real to begin with and, instead, was a fake discount.

Many online retailers, especially in the home goods space, have come under scrutiny for fake sales and deceptive pricing tactics, including:

Strikethrough “regular” prices that don’t reflect the item’s actual selling history
“Limited time” offers that are always running, week after week
Discount percentages that are calculated off inflated or fictitious prices

These practices are known as “false reference pricing” or “perpetual sale” schemes, and they may violate consumer protection laws in multiple states.

Why It Matters

Retailers that use fake discounts manipulate shoppers into overpaying, making them believe they’re getting a deal when they’re actually paying the going rate, or more. You might have chosen a different product or seller if you’d known the “deal” was never real.

What the Law Says

Both the Federal Trade Commission (FTC) and state laws, like the Georgia Fair Business Practices Act and California’s consumer protection laws, prohibit fake pricing tactics. Businesses are required to advertise honest discounts based on real, verifiable prices. If a product was never sold at the “regular” price, then advertising a markdown from that price is deceptive and unlawful.

We’re Investigating

Our firm is currently investigating retailers that use fake sales, drip pricing, and deceptive marketing tactics to mislead online shoppers. Fill out the questionnaire below for us to get a better understanding of your concerns.

We offer confidential, no-cost consultations to evaluate your situation. If you have further questions, feel free to reach out to us via email at [email protected] or call us at (202) 470-3520.