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    Editorials
    Saturday, May 04, 2024

    Sale price sorcery

    This editorial appeared in The Concord Monitor, N.H.

    A Car Talk listener once posed the following profound question: “Is there ever a day when mattresses aren’t on sale?” Probably not. The word “sale” provokes a Pavlovian response in many people. They salivate at the dream of getting a great deal and buying something for a lot less than the average sucker. But are there really all that many true sales out there? Not if the starting point is the manufacturer’s suggested retail price, list price or “original price.” More and more courts are considering whether the use of such terms should be considered deceptive advertising. Often, the answer is yes.

    Recently, New York Times reporter David Streitfeld pointed out that no matter what the suggested retail price is, it would be nearly impossible to find any retailer who is actually charging that price. He cites example after example, such as a Le Creuset skillet variously advertised with a list price of $260 or $285 that all online retailers were selling for $200. Everyone expects a deal when they buy online. Starting from a high number, even if it’s fictitious, leads people to think they are getting one.

    Fake starting prices, by whatever name, are being challenged by consumers, and in some cases have already led to million-dollar settlements. In a case under appeal, a California court hit online retailer Overstock.com with $6.8 million in penalties for misleading customers. In a case many people can unfortunately relate to, a man purchased a patio set from Overstock for $450, a discount of 55 percent from its list price of $999, Streitfeld wrote. The man soon learned that Wal-Mart was selling the same patio set for what turned out to be the common price of $247.

    Kohl’s, JCPenney and Amazon are among the companies that have faced or are facing court action over their use of list or suggested retail prices. Many more are likely to join the list.

    The best way to get the best deal is the same as it has always been. Consumers should do their homework, compare prices online and off by using exact make and model number, and consider shipping, taxes and other charges, return policies. To that we would add the value of buying locally, which keeps your money at work in your community, provides jobs, and helps your neighbors and the local economy.

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