How "was" prices work — and how to check a sale

The federal baseline: 16 CFR Part 233

The Federal Trade Commission's Guides Against Deceptive Pricing are short — five sections — and they explain when common price claims are honest. They are guides, describing how the FTC views pricing under its law against deceptive practices, rather than a detailed price-control rule. Here is what each section covers.

Two details in § 233.1 are worth knowing. First, a former price is not automatically fake just because few items sold at it — but a seller shouldn't imply it was a selling price unless substantial sales occurred. Second, even when no percentage is stated, a reduction should be big enough that a shopper would see it as a genuine saving, not a trivial one.

State rules can be stricter

Several states have their own comparison-pricing laws with concrete time limits. A 2025 overview by the law firm K&L Gates summarizes examples:

• California (Bus. & Prof. Code § 17501): an advertised former price must be the prevailing market price within the three months before the ad, unless another period is clearly disclosed.
• New Jersey: the former price must have been offered for at least 28 of the preceding 90 days.
• Oregon: promotional-priced items must have sold at the regular price within the preceding 30 days, or another specified period.
• Connecticut: comparison pricing is deceptive unless the former price was used in the last 90 days or the ad says when sales at that price occurred.

The same overview notes that former-price claims have been the subject of many class actions against retailers, some ending in large settlements. For shoppers, the practical lesson is simpler: a strike-through price is a marketing claim, and you can test it.

How to check a "sale" yourself

• Write down the exact item. The FTC suggests noting the manufacturer, model number, size and color before comparing prices, so you compare like with like.
• Compare the total. Add shipping, handling, delivery, taxes and other fees; a lower sticker price can cost more at checkout.
• Be wary of comparison sites' rankings. The FTC notes some are run by manufacturers or rank products by what sellers pay.
• Read the deal's conditions. Some advertised prices require buying something else first.
• Keep your own price log. For a planned purchase, a dated screenshot of the price every week or two shows whether the "was" price was ever the real price.
• Ask about price drops. The FTC suggests checking whether the seller offers price matching, or a credit or refund if the price falls after you buy.

If a discount looks fake

You can report a misleading advertisement to the FTC at ReportFraud.ftc.gov and to your state attorney general's consumer protection office. Keep the screenshots: date-stamped evidence of the price history is what makes a complaint useful.