What is deceptive reference pricing?

Deceptive reference pricing is displaying a strike-through 'was', 'original', 'compare at', or MSRP price next to a sale price when the item did not actually sell at that higher price in the recent past. In California, the reference price must have been the item's prevailing market price within the 90 days before the ad.

What is California's 90-day price rule?

California Business & Professions Code §17501 requires that any advertised former, regular, or list price must have been the prevailing market price of the item within three months immediately preceding the advertisement, or the ad must clearly disclose the date the price was in effect.

Are fake sale prices illegal?

Yes. Under California law and the FTC Act, advertising a former price the item never actually sold at, or a 'sale' that runs continuously, is deceptive and can trigger consumer-protection claims, class actions, and civil penalties.

How does TagTrue prove a 90-day rule violation?

TagTrue uses two evidence models: retailer admissions (where the seller labels the reference as MSRP or 'compare at') and community-tracked observations (timestamped screenshots showing the same 'sale' price running for more than 90 days).

Deceptive pricing and fake sale prices

Deceptive pricing is the practice of showing shoppers a "was" price that was never really the price. The strike-through number makes the sale look like a bargain — but the item was never actually sold at that higher amount in any meaningful way. In California, that specific tactic is illegal.

What counts as deceptive reference pricing?

A reference price (also called a "was" price, "original" price, "compare at" price, or MSRP shown in a strike-through) is deceptive when the retailer can't show that the item actually sold at that price during the 90 days immediately before the ad. California Business & Professions Code §17501 requires the reference price to be the item's prevailing market price within the last three months.

Two patterns TagTrue tracks

Admitted reference prices

The retailer openly states the "was" price is not a recent selling price — for example labeling it "MSRP", "estimated retail", or "compare at". If the item hasn't actually sold at that number in 90 days, the admission is the evidence.

Persistent "sales"

The same product sits at the same "sale" price for months. Community screenshots timestamp the listing across weeks — once the sale runs longer than 90 days, the strike-through price stops being a legitimate reference.

Why fake sale prices matter

Fake discounts distort consumer choice. Shoppers think they're saving 40% when the item's real market price is the "sale" number. Honest retailers who don't inflate reference prices look overpriced by comparison. And under California law, the practice creates civil liability for the retailer.

Compliant vs. violation

Compliant

A jacket sold at $180 through May. In June the retailer advertises "$180 → $99". The reference price was the prevailing price within 90 days.

Violation

A jacket was listed at $180 for one week in January. In June the retailer still advertises "$180 → $99" — with no meaningful sales at $180 in the past 90 days.

Report a fake sale price

TagTrue is the public database of retailers using deceptive reference pricing. Upload a screenshot, add a price observation, or rate a company's pricing transparency.

Report a violation Read the FAQ

TagTrue is a community project, not a law firm. Nothing here is legal advice. Statute: California Business & Professions Code §17501.