A former price should be a real price at which the bag was openly offered for a reasonably substantial recent period, in good faith.
A bag is listed at 60 percent off a crossed-out price, and you wonder whether the higher price was ever real.
A former-price comparison is honest only if the higher price was a genuine price at which the item was openly and actively offered to the public, in good faith, for a reasonably substantial recent period. That is the principle in the FTC’s Guides Against Deceptive Pricing, at 16 CFR 233.1.
What the guide says
- A former-price comparison is legitimate when 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.
- The offer must be in good faith, in the regular course of business, and recent.
- If the former price is not a bona fide price, but was inflated to make a large reduction, the comparison is deceptive.
- A seller who claims an item was “formerly sold at” a price is claiming substantial actual sales at that price.
- A price that was offered only briefly, or only to create an appearance of a discount, does not qualify.
What to check on a sale listing
- What does the crossed-out price refer to?
- Do other shops sell the same bag at a similar price?
- Is the sale ongoing for a long time?
- Is the “was” price a suggested retail price or the seller’s own?
- Would you pay the sale price if there were no crossed-out price?
A related habit
If a shop is always on sale, the crossed-out price may be a price that was seldom paid. Look at the sale price on its own: is it a fair price for this bag, compared with other shops? That question does not depend on any claim about a former price.
Where this answer stops
These are FTC guides, which are advisory, and the facts of each case matter. This is not legal advice, and it applies to US selling practice.
Sources and further reading
Three more perspectives
The FTC rule is a guide, not a price list. It tells sellers what is honest, and shoppers can use it as a yardstick, but it does not tell you whether a given bag was ever sold at the old price.
Check the price history if you can, or look at what other shops charge for the same bag. A discount that matches nobody else’s price is a prompt to be careful.
Look at the wording: “was”, “regular price” and “compare at” mean different things. Ask what the higher price refers to if it is not clear.
Independent and unofficial. berabags is an independent editorial site. It is not affiliated with, endorsed by or sponsored by any bag brand, retailer, airline or agency named on this page. This page contains no affiliate links; if berabags adds any in future they will be labelled. Rules and policies change, so check the linked source before you act. This is general information, not legal, medical or professional advice.
More Talk questions and guides
- TalkIs the “Was” Price on a Handbag Sale Real?
- TalkBrand-Name Bag at a Bargain: Could It Be Fake?
- TalkWhat Are the Signs of a Fake Online Bag Shop?
- TalkWhat Does the FTC Fake Review Rule Ban?
- TalkDoes the Padlock or HTTPS Mean a Bag Shop Is Safe?
- TalkHow Do You Spot Fake Reviews on a Bag Listing?
- TalkRefurbished, Vintage, As-Is: What Do They Mean?
- TalkHow Strict Is a Bag’s Made-in-USA Claim?
- TalkStock Photos or Real Photos of the Bag?
- TalkIs a Dupe Bag Legal? Counterfeits and Customs