Are there any laws governing the use of pricing information in advertising?

Yes, there are laws governing the use of pricing information in advertising in California. Under California’s Consumer Legal Remedies Act (CLRA or Act), advertisers cannot make false or misleading representations about the price of goods or services. This includes advertising a product at too low of a price, advertising a sale that does not truly exist, or making false “comparisons to past prices”. Additionally, it is illegal for a seller or advertiser to use bait and switch tactics, which is an advertising tactic of promising a low-priced product but then replacing it with a higher-priced one or no product at all. Such deceptive practices can lead to civil claims and even criminal penalties. Under California law, it is also illegal to advertise products at a discounted price without honoring the offer stated in the advertisement. In order to avoid the potential for any kind of legal action, all paid advertisements should include a disclaimer, such as “prices and availability are subject to change” or “quantities limited”, if applicable. Furthermore, retailers are required to prominently display the original price for any product that is the subject of a current promotional or sale offer. This ensures that consumers are not misled by prices that are significantly lower than usual. Lastly, any advertising should be accurate and non-deceptive. Making false, misleading, or exaggerated claims about the quality of a product will result in legal action.

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Are there any laws governing the use of pricing information in advertising?

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