HomeBlogBlogAre Fake Sale Prices Illegal? Know Your Rights

Are Fake Sale Prices Illegal? Know Your Rights

Are Fake Sale Prices Illegal? Know Your Rights

Are fake sale prices illegal?

In the United States, a fake sale price can be illegal if it misleads shoppers. Federal law prohibits deceptive business practices, and the Federal Trade Commission (FTC) has guidance on how retailers should advertise price reductions. State consumer-protection laws may also apply.

When can a sale price be deceptive?

A retailer may mislead customers by showing a “regular” or “was” price that was never genuinely charged, or by briefly raising a price just to advertise a later discount. Under the FTC’s pricing guidance, a former price used for comparison should generally be a bona fide price offered openly and in good faith for a substantial period—not an invented reference point.

For example, advertising an item as “50% off” may be deceptive if the supposed original price is fictional and shoppers are led to believe they are getting a real markdown. The facts matter, including the retailer’s pricing history, the wording of the ad, and applicable state law.

Does every inaccurate discount break the law?

Not necessarily. A pricing mistake, a short-lived promotion, or a difference between stores does not automatically prove unlawful conduct. Regulators or courts may consider whether the claim was likely to mislead a reasonable shopper and whether the seller had a legitimate basis for the comparison price. Rules and remedies can vary by state.

What can shoppers do?

Save screenshots of the offer, note the date and seller, and compare the advertised reference price with the item’s price history or prices at other retailers. If the claim seems deceptive, contact the retailer and consider reporting it to the FTC or your state attorney general. A report does not guarantee a refund or individual legal remedy, but it can help authorities identify patterns.

For practical ways to check whether a discount is genuine, read the guide to spotting fake discounts and verifying deals before you buy.

FAQ

What should I do if a store advertises a misleading discount?

Keep evidence of the ad and the price, then raise the issue with the retailer. You can also submit a complaint to the FTC or your state attorney general, especially if the practice appears widespread.

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