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Published editorial

By StealIQ

How fake 'was' pricing works

A large percentage-off badge can be mathematically correct and still create the wrong impression. The missing question is whether the reference price was genuine.

A sale sign gives you two numbers: the price you can pay now and a higher number that makes the current price look attractive. The higher number may be labeled “was,” “regular,” “list,” “compare at,” or something similar. The arithmetic between the two numbers is easy. The meaning of the higher number is the difficult part.

A percentage tells you only the distance between two displayed figures. It does not prove that shoppers recently faced the higher price, that the seller regularly offered the item at that price, or that competing stores use the same reference. A 40 percent discount can therefore describe a real temporary reduction, a comparison with a manufacturer’s suggested price, or an inflated anchor that existed mainly to make the current offer look urgent.

The reference price is the claim

When a retailer says an item “was” a higher price, the important claim is not the subtraction. It is the implied history. The wording suggests that the higher figure reflects a genuine prior market condition and that buying now produces savings relative to it.

The Federal Trade Commission’s Guides Against Deceptive Pricing discuss this directly. The former-price guide says a comparison should use a bona fide former price: a price at which the seller openly and actively offered the product in good faith for a reasonably substantial period in the recent regular course of business. It warns against briefly establishing an artificially high price for the purpose of advertising a large reduction later.

Those federal guides are administrative interpretations rather than a substitute for legal advice, and state rules can be more specific. The practical lesson for a shopper is narrower and simpler: a crossed-out number needs context. A retailer-controlled reference price is not the same thing as independent evidence of what the item usually costs.

“Was” is not always “sold for”

There is another distinction inside the wording. An item can be offered at a price without many people buying it at that price. The FTC guide recognizes that actual sales are not always required for a bona fide former-price comparison, but stronger language such as “formerly sold at” carries a stronger implication about completed sales.

That difference matters because a price can be technically present on a page while having little connection to normal purchasing behavior. A short-lived high price, an out-of-stock listing, or a figure that appears only before a perpetual promotion may be a weak benchmark even when the number can be found somewhere in the seller’s records.

Price intelligence should therefore separate three questions:

  1. What price is available now?
  2. What price did this exact product actually display over time?
  3. How durable were the higher and lower prices?

The first question supports a checkout decision. The second and third determine whether the “sale” framing deserves confidence.

A labeled illustration

Consider this fictional example: a jacket displays “was $100, now $60.” The advertised reduction is 40 percent. That calculation is correct because $40 is 40 percent of $100. But the calculation alone cannot tell you whether $100 was the jacket’s normal price.

If dated observations show the same exact jacket at $60 to $65 for most of the recent period, then $60 is not meaningfully unusual. The “was $100” label may still refer to a list price or an earlier offer, but it is a poor description of the price a patient shopper usually encountered. If the jacket instead spent months at $100 and only recently fell to $60, the same badge carries much stronger historical support.

This is an illustration, not a report about a real jacket or retailer. Its purpose is to show why the reference price, observation dates, and product identity matter more than the printed percentage.

Exact identity comes before history

A valid comparison must follow the same product. Color, size, storage capacity, model year, included accessories, and bundle contents can all change value. Combining a base console with a game bundle, or mixing two sneaker colorways with different style codes, creates a misleading history even if the brand name is identical.

This is why a useful record starts with a canonical product page and a stable identifier. A silhouette such as “Jordan 1” is not a trackable item by itself. A specific style code is. A television series is not enough when screen size and model year differ. Evidence should be rejected or separated when identity is ambiguous.

How StealIQ treats the claim

StealIQ records the current price and any displayed list price as different fields. A displayed list price is evidence of what the page claims; it is not automatically accepted as the product’s typical price. Typical price is derived from dated, reviewed observations, not copied from a retailer’s strike-through number.

A crawl observation begins unverified. It must preserve the source URL, timestamp, product title, price, and availability. Repeated refreshes of the same source on the same day do not become extra historical votes. Two retailers agreeing today provide a useful cross-sectional check, but they do not create a longitudinal history.

Until the history is sufficient, the honest result is UNKNOWN. That response can feel less satisfying than a bold score, but it avoids turning a retailer’s marketing anchor into StealIQ’s evidence.

A practical checklist

Before treating a “was/now” claim as savings, ask:

  • Is this the exact model, size, colorway, and bundle?
  • Is the current item actually available at the shown price?
  • Does the higher reference describe the seller’s own former price, a suggested price, or a comparison elsewhere?
  • How often and how recently did the item appear at the higher price?
  • Is the current price lower than the product’s observed range, or merely lower than the printed anchor?
  • Does the offer add bundle value rather than reduce the hardware price?

A genuine sale survives those questions. A weak reference-price claim depends on shoppers never asking them.

The goal is not to declare every reference price deceptive. Many promotions reflect real reductions. The goal is to stop treating the percentage as proof. Price history supplies the missing timeline, and a timeline turns a marketing comparison into a testable claim.

Informational only. This article explains an evidence method and is not legal advice.

How fake 'was' pricing works | StealIQ