A price point presented to consumers as a standard or fair comparison can mislead if it’s artificially inflated, outdated, or irrelevant. For example, if a retailer claims a product’s original price was $100 but it was never actually sold at that price, and is now being offered at a “discounted” $75, this creates a false sense of value. Similarly, referencing a manufacturer’s suggested retail price (MSRP) that is significantly higher than the prevailing market price gives a distorted view of the savings offered.
The manipulation of perceived value through misleading comparisons undermines consumer trust and distorts market efficiency. Historically, regulators have addressed deceptive pricing practices through truth-in-advertising laws and guidelines aimed at ensuring transparency and preventing consumer exploitation. These regulations acknowledge the crucial role accurate pricing information plays in informed purchasing decisions and the ethical responsibilities of businesses to provide such information.
