Everyday spending · Savings guide

How to Spot Fake Discounts and Inflated "Was" Prices

A big percentage off means nothing if the original price was never really charged. A few quick checks tell a real saving from a marketing number.

Reviewed · 2 official sources

Why "was" prices can mislead

A discount is only as honest as the price it is measured against. The FTC's Guides Against Deceptive Pricing (16 CFR Part 233) say a former-price comparison should be based on a price the item was actually and openly offered at for a reasonably substantial period, not a price set high just to advertise a markdown.

Five checks before you buy

  • Compare the sale price at two or three other retailers, not the "was" price.
  • Look at the item's price history if the store or a price tracker shows it.
  • Be wary of a sale that never seems to end, or a countdown timer that resets.
  • Check the exact model number. Sale versions can differ from the regular model.
  • Add shipping, fees and the return policy to the total before you compare.

"Compare at" and list prices

"Compare at", "MSRP" and "list price" labels are reference points chosen by the seller. If few stores actually charge that price, the saving shown is not a saving you would get anywhere else.

Official sources

Terms and amounts change. Check the current details here.

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Questions

Is it illegal to show a fake original price?

In the US, the FTC treats misleading former-price comparisons as deceptive, and many states have their own rules. If you think an ad is misleading, you can report it to the FTC.

How can I see a product's price history?

Some stores show it on the product page, and browser extensions and price-tracking sites keep histories for major retailers. Use more than one source.

Is a percentage off or a dollar amount off better?

Neither is better by itself. Work out the final price, then compare that final price with other stores.

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Everyday spendingHow to Use Unit Prices to Save on GroceriesThe unit price (price per ounce, pound, liter or count) is the fairest way to compare two products. It shows when the big pack is not a better deal, and when a package quietly shrank.Read the guideEveryday spendingHow to Stack Coupons, Cashback and Loyalty RewardsStacking means combining more than one saving on the same purchase, for example a store sale, a coupon, a cashback portal and loyalty points. It works when the rules allow it, and the order matters.Read the guide

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