When you see a product advertised at a lower price than its usual cost, you need to verify if that price is legitimate. The Federal Trade Commission (FTC) advises checking whether the advertised price is based on a genuine past price or a fictitious one.
Quick Answer
To confirm a price reduction is real, check if the seller used a genuine past price for regular sales. If the former price was openly offered for a substantial time, the discount is valid.
What Makes a Price Reduction Legitimate?
A legitimate price reduction must be based on a genuine former price that the seller openly and actively offered for sale. This price should have been part of the seller's regular business practices for a reasonably substantial period.
The FTC requires that the former price be one the seller actually used in their regular business, not a fabricated figure.
- The former price must have been openly and actively offered for sale for a reasonably substantial time.
- The price should reflect the seller's regular business practices, not a temporary or artificial figure.
- If the seller claims a price reduction but the former price was fictitious, the discount is deceptive.
- Online Shopping: Also, keep records of purchases, like receipts and emails, to make sure you're able to hold a seller to its promises.
- Some sites let you sign up to get price alerts when prices change.
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- ( a ) One of the most commonly used forms of bargain advertising is to offer a reduction from the advertiser's own former price for an article.
How to Track and Verify Price Comparisons
To ensure you're comparing prices accurately, note the product's manufacturer or model number, size, color, and shipping fees.
When shopping online, use price alerts to stay updated on changes. These alerts notify you when a product's price drops or increases, helping you catch legitimate deals before they disappear.
Keep records of all purchases, including receipts and emails, to verify seller promises.
Products Read reviews with a critical eye Expert reviews from trusted websites are a good place to get information about what to buy and who to hire.
Trade Practice Rules Part 233 Previous Next Top Table of Contents Enhanced Content – Table of Contents Part 233 Guides Against Deceptive Pricing 233.1 – 233.5 233.1 Former price comparisons.
- Record the product's manufacturer or model number, size, color, and shipping fees for accurate comparisons.
- Set up price alerts to monitor price changes and avoid missing legitimate discounts.
- Save receipts and emails to prove you paid the advertised price and can hold sellers accountable.
- Learn About Sellers and Products Comparison Shopping Delivery, Return, and Refund Policies Pay by Credit Card When Possible Keep Records Know What Personal Information the Site or App Collects Report Problems Learn About Sellers.
- Read the terms of the advertised "deal." For example, will you have to buy unwanted products to get the advertised "low price"?
- Background and more details are available in the Search & Navigation guide.
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- If the former price is the actual, bona fide price at which the article was offered to the public on a regular basis for a reasonably substantial period of time, it provides a legitimate basis for the advertising of a price comparison.
Avoiding Deceptive Pricing Tactics
Be cautious of price comparisons that rely on fictitious former prices. The FTC warns that if a seller uses an inflated price to create a false sense of value, the discount is deceptive.
Always read the terms of the advertised deal to understand any hidden conditions. For example, some discounts require you to buy unwanted products to qualify for the lower price, which can be misleading.
Check if the seller has a price-matching policy that guarantees they'll match competitors' prices and in-store prices.
- Verify that the former price was a genuine, regular price, not a fabricated figure.
- Read the terms of the deal to avoid hidden conditions like mandatory purchases.
- Confirm the seller offers price matching to align online and in-store prices.
- Comparison Shopping To comparison shop for a product, make notes of the item's manufacturer or model number, plus details like size, color, or shipping fees.
- See if a seller has a price-matching policy that guarantees it will match competitors' prices and match its own in-store price to its online prices.
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FAQ
How do I know if a price reduction is real?
Check if the seller used a genuine past price for regular sales. The FTC requires that the former price was openly offered for a substantial time and not artificially inflated. If the price was a real past price, the discount is legitimate.
What should I do if a seller claims a price reduction but I suspect it's deceptive?
Review the seller's terms to ensure the former price was a genuine, regular price. If the price was fictitious, the discount is deceptive. Keep records of the original price and the deal terms to verify the seller's claims.
