There is nothing more alluring to consumers than getting a good deal. Traditional and online retailers have long used sales, coupons, markdowns and other discounts to help move inventory while letting consumers feel that they saved money.
While this practice is not illegal in itself, regulators and class action attorneys follow the adage “if it’s always on sale, it’s never on sale,” and are quick to file suit when merchandise is perpetually on sale, or where retailers advertise a regular, former or strike-through price — also referred to as a reference price — that they seldom charge.
These cases have shown no sign of slowing down, and retailers need to carefully monitor their pricing strategies to avoid becoming a target.