In the fast-paced world of D2C eCommerce, “strike-through” pricing is seemingly everywhere. Brands and retailers use these tactics to drive urgency and boost conversions on their websites. One of the most popular tactics is “strike-through” or former price advertising—showing customers a discounted price next to a higher, crossed-out price. But did you know that the way you advertise discounts could be putting your brand at risk for lawsuits and regulatory action?
It’s tempting to highlight big savings with crossed-out prices or “was/now” deals. However, both the Federal Trade Commission (FTC) and many states have strict rules about how you compare current prices to former prices and MSRPs. Plaintiffs’ lawyers (and potentially regulators) are watching, and class action lawsuits over deceptive pricing are on the rise. Vorys eControl has observed an uptick in demand letters and lawsuits filed against brands for allegedly deceptive price comparisons on their websites—often resulting in costly settlements and reputational damage.
There are many ways that an ad can be deceptive, but here are a few examples:
Vorys eControl can help you audit your pricing practices, train your teams, and develop promotions that do not run afoul of the law.
If you would like to further discuss, email Jessica Cunning directly.
