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Expert Answer • 2 min read

What's required for 'was/now' pricing in discount advertising?

I'm looking to implement 'was/now' pricing in my e-commerce store to make my discounts more compelling and transparent. I want to understand the legal requirements, best design practices, and how to effectively communicate price reductions to potential customers. What are the critical elements I need to consider when displaying original and discounted prices to ensure I'm both persuasive and compliant with advertising regulations?
Muhammed Tüfekyapan

Muhammed Tüfekyapan

Founder & CEO

2 min

TL;DR - Quick Answer

Was/now pricing (also called reference pricing) is legal when the 'was' price was genuinely charged for a meaningful period before the promotion. The FTC requires it reflect a bona fide former price; EU Omnibus Directive (2022) requires displaying the lowest price from the previous 30 days. Inflating a 'was' price constitutes deceptive advertising in all major markets.

Complete Expert Analysis

Was/Now Pricing Requirements in Discount Advertising

Was/now pricing (showing the original price crossed out next to the sale price) is one of the most powerful conversion tactics in ecommerce - and one of the most legally scrutinized. Regulators in every major market have enforcement actions specifically targeting inflated reference prices.

Legal Standards by Jurisdiction

JurisdictionStandardDocumentation Required
United States (FTC)Bona fide former price, offered in good faithPrice history showing genuine sales at "was" price
European UnionMust show lowest price in prior 30 days30-day price log for every discounted product
United Kingdom28 days at "was" price in preceding 6 monthsPrice history, sales volume data
Australia (ACCC)Genuine former selling price for reasonable periodDocumentation of genuine sales at reference price

Common Violations

  • Artificial inflation: Setting a high "original" price for one day, then running a "50% off" sale
  • Perpetual sale: Product listed at "sale" price more often than at "regular" price
  • MSRP reference: Using manufacturer's suggested retail price as reference when no one actually charges that
  • Competitor comparison: "Cheaper than [competitor]" claims without current verification

Safe Harbor Practices

Price your products genuinely, sell at full price for meaningful periods, and only apply was/now pricing when the discount is real. The businesses that get into regulatory trouble are those trying to create illusory discounts - real discounts from real prices are both legally safe and more effective because customers can sense authentic value.

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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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