Fake discounts: how to spot an inflated “was” price, and what the rules say

Last updated: October 20, 2026

Disclosure: PricePing makes this guide, and the last section shows how the PricePing app helps. The rules are summarised from the regulators’ and lawmakers’ own texts, checked on October 20, 2026 (see Sources). This is general information, not legal advice, and it names no store as breaking any rule.

The short answer

A fake discount measures its “saving” from a price the product was not really sold at. The label can say anything; the product’s price history can’t. If today’s “40% off” price is what the product has cost for most of the past month, it is not a sale. If it is the lowest price in weeks, it is. Rules in the US, UK, EU and UAE all say a reference price has to be genuine, but nobody checks every label for you, so keep your own history of the things you plan to buy.

Five signs a discount isn’t what it looks like

The “was” price barely existed: The product sat at the higher price for a few days just before the sale, so the discount is measured from a number almost nobody paid.
The sale never ends: The same “limited time” markdown is there every time you look, or a countdown timer resets when you reload the page. If the sale price is the normal price, the discount is not real.
The comparison is to an RRP or “compare at” price nobody charges: A saving measured from a recommended retail price, or another shop’s price, means little if the product is generally sold for much less than that number.
The price went up before the event: A product that crept up in the weeks before Black Friday and then came back down is not on sale; it is back where it was.
“Up to 70% off” covers very little: The headline percentage applies to a few items, and the thing you want is 10% off or not reduced at all.

What the rules say

United States: the FTC

The Federal Trade Commission’s Guides Against Deceptive Pricing (16 CFR 233.1) say a reduction from a former price is fair when that price was the actual, bona fide price the product was openly offered at, on a regular basis, for a reasonably substantial period of time. When the former price was set artificially high so that a big reduction could follow, the guides call the bargain false: the “reduced” price is probably just the regular price.

European Union: the 30-day rule

Since the EU’s Omnibus Directive (2019/2161) added Article 6a to the Price Indication Directive, any announced price reduction has to show the trader’s prior price, and the prior price means the lowest price the trader charged in a period of at least 30 days before the reduction. So in the EU, a “was” price should be the 30-day low, not the 30-day high. Member states may set details, such as a shorter period for products on sale for less than 30 days.

United Kingdom: Trading Standards and the ASA

UK pricing rules now sit in the Digital Markets, Competition and Consumers Act 2024. The Chartered Trading Standards Institute’s Guidance for Traders on Pricing Practices lists comparing a current price to a reference price that is not genuine as an example of false information in a price promotion, and says a trader must be able to show that a quoted saving is genuine. It also makes the point this guide is built on: shoppers are unlikely to have recorded the old prices themselves. For adverts, the UK Advertising Codes (CAP Code rule 3.39) say price comparisons must not mislead by falsely claiming a price advantage, and that comparisons with an RRP are likely to mislead if the RRP differs significantly from the price the product is generally sold at.

United Arab Emirates: the Consumer Protection Law

The UAE’s Federal Law No. 15 of 2020 on Consumer Protection defines misleading advertising and says that “advertising fake or untrue prizes or discounts is considered misleading advertising.” It also says advertised prices must not be misleading, and that a provider needs a prior licence from the competent authority before offering general discounts. In Dubai, Dubai Economy said in 2020 that a permit is mandatory for any promotional offer, so that offers aren’t tampered with.

How a price history exposes a fake discount

Every rule above comes down to one question: what did this product actually cost before the sale? A price tracker answers it with your own records rather than the store’s label. An invented example:

You add a coat on October 1. It costs $120.
Through October it stays at $120, then on November 20 it rises to $160.
On Black Friday it is “25% off”, at $120.

The label says you save $40. Your history says you pay exactly what it cost all of October. If instead it had dropped to $95, the history would show that too: the lowest price since you started watching, which is a real reason to buy.

PricePing, the iPhone price tracker app, keeps that record for you. Share a product page from Safari or any store’s app, and PricePing checks the price at least once a day (our servers aim for every 12 to 24 hours, and your phone can check more often), adds each reading to the product’s price history, and sends a push notification when the price drops the way you asked: any drop, below a price you set, or by a percentage. It works at almost any online store, including Amazon, Zara, Nike, Uniqlo and Lululemon. A Below a price alert is the simplest defence against a fake discount: you decide what the product is worth to you, and the label stops mattering.

One honest catch: PricePing’s history starts on the day you add a product. It can’t show you last year’s prices, so add what you are considering weeks before a big sale, not on the day.

Where to report a fake discount

US: the FTC at ReportFraud.ftc.gov.
UK: through Citizens Advice, which passes reports to Trading Standards.
EU and UAE: your national or local consumer protection authority.

PricePing’s limits, honestly

It is a subscription with no free tier. Monthly plans start with a 7-day free trial; yearly plans don’t have one.
Price history starts when you add a product. It can’t show what the price was last year.
Prices are checked at least once a day, not every second, so alerts are not instant.

Questions

What is a fake discount?

A fake discount compares the sale price with a higher price the product was not really sold at, such as a was price that only lasted a few days, or a recommended retail price nobody charges. The saving looks big, but you are paying about what the product normally costs.

Are fake discounts illegal?

In many places, yes. The US FTC's Guides Against Deceptive Pricing call a reduction from an inflated former price a false bargain. EU rules say a price reduction must show the lowest price of at least the previous 30 days. UK rules and the UK advertising code ban misleading price comparisons, and the UAE's Federal Consumer Protection Law treats advertising fake discounts as misleading advertising. This is general information, not legal advice.

How can I tell if a discount is real?

Look at the product's price history, not the was price on the label. If the sale price is the lowest the product has been for weeks, the discount is real. If the product has cost the same sale price most of the month, or went up just before the sale, it is not.

How do I see a product's price history?

Track it before you need it. PricePing, the iPhone price tracker app, records the price of every product you add each time it checks, at least once a day, and shows the history in the app. The history starts on the day you add the product, so add things you are thinking about well before a sale.

Where do I report a fake discount?

In the US, report it to the FTC at ReportFraud.ftc.gov. In the UK, Citizens Advice passes reports to Trading Standards. In the EU and the UAE, contact your national or local consumer protection authority.

More guides: Black Friday price tracking, how to get notified when a price drops, does lululemon do price adjustments?, the Amazon price tracker app guide, the best price tracker apps for iPhone, the Keepa alternative for iPhone, the camelcamelcamel alternative for iPhone, PricePing vs Keepa, PricePing vs camelcamelcamel and PricePing vs PayPal Honey. All guides are in PricePing guides.

Sources

All checked on October 20, 2026.

Try PricePing on iPhone. Share a product link from almost any store and get a ping when the price drops. Monthly plans start with a 7-day free trial.