Expert Answer • 2 min read

What are the requirements for 'comparison pricing' in discounts?

As an e-commerce manager, I'm struggling to understand the legal and ethical requirements for displaying comparison prices during discount campaigns. I want to ensure my pricing strategies are transparent, compliant with regulations, and build customer trust. What are the specific guidelines for showing original prices, calculating discount percentages, and avoiding misleading marketing practices when presenting comparative pricing?
Muhammed Tüfekyapan

Muhammed Tüfekyapan

Founder & CEO

2 min

TL;DR - Quick Answer

Comparison pricing requires showing the genuine original price, using the most recent non-promotional price within the last 30 days, displaying clear discount calculations, and avoiding deceptive tactics that artificially inflate original pricing.

Complete Expert Analysis

Comprehensive Guide to Comparison Pricing Requirements

Navigating the complex landscape of comparative pricing demands precision, legal awareness, and strategic transparency to maintain customer trust and regulatory compliance.

Legal Framework for Comparison Pricing

RequirementSpecificationCompliance Standard
Original Price VerificationMost recent non-promotional price within 30 daysFTC Guidelines
Discount CalculationClear percentage or dollar amount reductionTransparent Representation
Price History DocumentationMaintain records of pricing for minimum 90 daysAudit Readiness

Key Compliance Strategies

  • Accurate Base Pricing: Use the most recent legitimate selling price, not artificially inflated reference prices
  • Clear Discount Methodology: Show exact calculation method for price reduction
  • Temporal Consistency: Maintain pricing consistency across marketing channels

Prohibited Pricing Tactics

1.

Fake Original Pricing

Creating fictitious high prices to make discounts appear more significant

2.

Misleading Comparative References

Using irrelevant or manipulated price comparisons

3.

Inconsistent Cross-Channel Pricing

Displaying different prices across platforms without justification

Best Practices for Transparent Pricing

Documentation Requirements

  • Maintain comprehensive pricing records
  • Screenshot historical pricing data
  • Document discount calculation methods

Pricing Display Guidelines

  • Show original and discounted prices clearly
  • Use strikethrough for original pricing
  • Highlight percentage savings

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Muhammed Tüfekyapan

Muhammed Tüfekyapan

Founder & CEO of Growth Suite

With over a decade of experience in e-commerce optimization, Muhammed founded Growth Suite to help Shopify merchants maximize their conversion rates through intelligent behavior tracking and personalized offers. His expertise in growth strategies and conversion optimization has helped thousands of online stores increase their revenue.

E-commerce Expert Shopify Partner Growth Strategist

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