Strike-Through Pricing Laws: What's Legal in Each State

Strike-through pricing — showing a crossed-out "original" price next to a lower sale price — is one of the most effective conversion tactics in e-commerce. It's also one of the most regulated.

The core rule: reference prices must be genuine

Across virtually all U.S. states, the fundamental principle is the same: the reference price (the "was" price) must be a genuine price at which the item was actually offered for sale for a meaningful period of time. Inflating the reference price to make a discount look bigger is textbook price deception under UDAP laws.

States with specific pricing regulations

Some states go further than the general UDAP prohibition with specific pricing statutes:

• **California** — Business & Professions Code § 17501 requires that the "former price" must be the prevailing market price within the last three months, and must have been offered at that price for a "reasonably substantial period."
• **New York** — GBL § 350 prohibits deceptive pricing practices. The AG has specifically targeted inflated reference prices in online retail.
• **Massachusetts** — 940 CMR 6.00 requires comparison prices to reflect the actual selling price during a reasonable period before the sale.
• **Connecticut** — CUTPA applies broadly to any pricing representation that is likely to mislead a reasonable consumer.

Best practices for compliant strike-through pricing

1. **Only use reference prices the item actually sold at** for a meaningful period (at least 28 days in the prior 90 days is a safe benchmark). 2. **Date your sales** — if a "sale" runs indefinitely, the sale price becomes the regular price. 3. **Be specific about what the reference price represents** — "Original price" vs. "MSRP" vs. "Competitor price" have different legal implications. 4. **Audit your pricing feeds** — if you use dynamic pricing or import from suppliers, verify that reference prices are accurate. 5. **Document your pricing history** — keep records that prove the reference price was genuine in case of an inquiry.

Real enforcement examples

In recent years, attorneys general have brought enforcement actions against major retailers for deceptive comparison pricing, with settlements ranging from hundreds of thousands to tens of millions of dollars. These aren't just risks for big companies — small e-commerce stores face the same rules.

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**Disclaimer:** This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice specific to your business.