Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Internet Shop

Consumers, particularly online shoppers, are constantly looking for a discount. Given that “nobody pays retail anymore,” online retailers are facing increased challenges when comparing their own discounted prices to original or suggested retail prices. As a result, retailers are being accused with greater frequency of exaggerating discounts in comparison to inflated original prices. Publications such as the The New York TimesFN:1 have recently highlighted this phenomenon, which can create a false impression that consumers are getting significant savings. A Times survey concluded that many promoted products were not truly being offered at the advertised list price. Those findings are consistent with a number of lawsuits filed against leading online and brick-and-mortar retailers which challenge such practices.

Retail purchasing and pricing practices have changed dramatically with the Internet, but the law has not always kept pace. In the click of an enter button, consumers now have the ability to use search engines to scan prices advertised by literally hundreds of online retailers. Yet, when looking for guidance about the legal requirements for establishing and comparing to a suggested retail price, retailers are forced to rely on 50-year old guidelines and a patchwork of similarly outdated and confusing state pricing laws. These requirements, while well meaning, were drafted prior to the existence of the virtual marketplace in which retailers now compete, and consumers now shop. State regulators and class action lawyers are now recognizing the gap between statutory requirements and the current marketplace, and are challenging retailers’ pricing practices that they believe violate the governing law.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]

Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.