Washington AG Settles $2.8M Case Over Fake 'Original Price' Claims

The Washington State Attorney General reached a **$2.8 million settlement** with a major online retailer over allegations that the company displayed inflated "original prices" and strikethrough prices that were never actually charged to consumers.

The Case

The AG's investigation found that the retailer routinely displayed "Was $X, Now $Y" pricing where the "Was" price was either never offered or was offered for only a brief period to create the appearance of a discount. Under Washington's Consumer Protection Act (RCW § 19.86.020), this constitutes a deceptive act or practice.

Former-Price Substantiation Requirements

While federal and state rules vary, the general standard is:

• A "former price" or "original price" must represent the actual price at which the item was openly offered for sale for a **reasonably substantial period** before the reduction.
• Many states follow the FTC's guidance: the former price should have been offered for at least **28 of the prior 90 days**.
• Manufacturer's Suggested Retail Price (MSRP) can be used as a comparison, but only if the MSRP is the actual prevailing retail price in the market area.

What E-Commerce Businesses Should Do

1. **Audit your pricing displays.** If you show strikethrough prices, verify that the "original" price was actually charged for at least 28 of the past 90 days. 2. **Document your pricing history.** Keep records showing when each price was in effect. This is your defense if an AG investigates. 3. **Don't inflate MSRP.** Using inflated MSRPs that no one actually charges is a common enforcement target. 4. **Add substantiation disclosures.** Consider adding a footnote: "Original price reflects the price at which this item was offered on [site] for at least 28 of the last 90 days."

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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.