LOS ANGELES, California, October 28, 2026 — It’s that time of year when holiday sale signs are all around, and not every discount is what it seems. Some retailers habitually raise original prices before discounting, a practice known as “faux markdown,” which leads some consumer researchers to say it can be the equivalent of inflated gas prices that ultimately leave no more savings for consumers. Savvy shoppers can avoid being pulled by the device of price distortion. Consumer advocacy reports and deceptive pricing guides published by the Federal Trade Commission review retail advertising compliance and bargain pricing regulations.
How Fake Discounts Actually Work
During a six-month survey of 25 large retailers, a consumer advocacy group discovered the discounts at many stores averaged almost nonstop. According to Consumers’ Checkbook, researchers discovered that retailers seldom, if ever, planned to sell items at their marked “regular” price. Such pricing behavior implies that the price quoted in the discount is usually never charged appropriately. Retail market studies published by Consumer Reports examine misleading sales practices and retail discounting strategies.
Many states and federal law prohibit raising the original cost to make a bargain out price — characters call that “bargain pricing.” Deceptive pricing is, according to a former Federal Trade Commission official, advertising an inflated list price. However, proved largely unenforceable, and over the last few decades, this practice has come up against little challenge: the onus has been largely on shoppers themselves.
Red Flags Worth Watching For
Some of the most obvious red flags are deeply discounted prices that stay the same across multiple shopping seasons. If there always seems to be a “40% off” sale on items throughout the year, those items never approximate real value at their original price. Comparing prices at different retailers before making your purchase can often expose a deal that is not as competitive.
Browser extensions and price-tracking tools can display how much the price of a product has risen or fallen over the last few months. That history will typically indicate if a price billed as a “sale” is consistent with what it has sold for repeatedly. Shoppers should also be on guard against urgency tactics such as countdown clocks or “limited-time” language to dissuade price comparison.
Protecting Yourself from Scam Websites
But in addition to the inflated discounts, this time of year also sees an uptick in fake shopping sites. Federal Trade Commission conclusion: Inexpensive prices on expensive items are typically a tip that the site is likely to be a fraudulent one rather than an actual deal. It was a click on ads that invite heavy discounts, only to arrive at sites that keenly take your money before relinquishing any goods. Cybersecurity and internet fraud advisories published by the Cybersecurity and Infrastructure Security Agency provide guidance on identifying fraudulent e-commerce websites and online shopping scams.
In fact, there is a way to prevent this issue by researching unknown retailers prior to the purchase which includes entering their name and the word “complaint” or “scam”. Using a credit card instead of gift cards or wire transfers can protect you much better if something goes wrong. No legit retailer would ever demand payment methods that are virtually untraceable and non-disputable.
What Shoppers Can Do This Season
It helps shoppers learn what typical prices are before the holiday season kicks off, giving them something to compare sales against. For example, recording pricing from merchants over a time period and noting their markdowns can help you determine if the discount claims are truly significant or just fictitious. Reporting suspicious unscrupulous pricing to the state attorney general, or ultimate Enge. FTC creates records for future enforcement as well.
If you want to find something worth buying, patience is still your best weapon as a shopper over the holiday rush, experts say. Many discounts last longer in reality than they appear to, as not every weekend is a last chance one for retailers — meaning less pressure each time to buy. Investing the effort to compare prices between stores is still the most effective way of identifying true savings from artificial urgency.
Limited federal action in recent years has also left some of the enforcement to state-level attorneys general. Attorneys general in multiple states have brought settlements against large merchants for deceptive pricing practices (e.g., scanner overcharges or false advertising). Such moves seem to indicate that, even without a robust federal enforcement regime, consumer complaints can spur real accountability.
Consumer advocates suggest storing the memory of prices we see in stores, or online, the months leading up to Christmas… Even a simple photo or screenshot could be helpful documentation provided a shopper later doubts whether the discount was real. That practice also simplifies the process of community filing a complaint with a state consumer protection office if necessary.
After all, informed shoppers are still the best defense against hallowed discount claims. A fundamental appreciation of how retailers determine sale pricing, along with a little willingness to compare and validate, gives the reins back to consumers. That extra bit of diligence can mean real, verified savings — particularly as the holiday season picks up.
