| Discounts call the attention of consumers, instead of just a small price representation, especially in high consume dates such as “Black Friday” “Mother’s and Father’s days”, “Christmas” among others. In this regard, businesses use this technique to attract their preference over other competitors. Discounts are not harmful itself for consumers, actually, when genuine, they are desirable for improving commerce. The problem comes when instead of genuine, they mislead consumers. With misleading pricing and discounts, consumers are deceived to think that they are buying a product or service with a particular benefit, i.e., a lower or discounted price for a high-quality product or service (however, in reality they are paying more for the apparently discounted item than its baseline price). In that sense, advertisers increase retail list prices to make discounts appear larger than they actually are. Specialists on advertising regulation and self-regulation join efforts to reduce that practice. We have noticed some main common ground on APEC Economies related to misleading pricing and discounts: (i) Pricing discounts are not deceptive nor unfair itself as these are part of business strategy; (ii) Marketing agencies strength the strategy presenting it as clever pricing; (iii) Pricing issues are accidental anomalies of price algorithms; (iv) Whether or not this pricing scheme is legal; (v) Difficulties on the supervision of pricing on online advertising campaigns by digital platforms; (vi) Dark Commercial Practices, among others. The Federal Trade Commission of the United States of America has pointed out that two of the biggest problems related to pricing as a marketing tool are related to sellers who: (i) make incorrect price comparisons with other merchants or with their regular prices; and (ii) offer a product that is supposed to be free, when in fact it has a specific cost. The Competition Act from Canada contains civil provisions aimed at preventing anti-competitive practices in the marketplace and establishes the regulations applicable to misleading practices, focusing on price comparisons. The Australian Consumer Law makes provisions relating to prices, sanctioning commercial practices related to false or misleading representation with respect to the price of goods or services. Online advertising practices are global, with consumers and businesses regularly purchasing goods and services from businesses outside their local economy. In addition to different prices strategies employed by businesses, they also use a range of other techniques to influence consumers’ purchasing decisions. There is a concern that more businesses will adopt these manipulative practices in response to competitors employing and regularly using these methods. Businesses, that comply with consumer law, are at a risk of a competitive disadvantage when their competitors engaging in misleading or deceptive advertising and pricing practices. |