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What you should know about deceptive pricing

On Behalf of | Jan 4, 2022 | Business & Commercial Law

When you are running a business, you should know the nuances of sales. The process is more than your customers paying you in exchange for a product or service; as sales tactics evolve over time, you must be savvier in order to make a profit.

There are many techniques you can use to increase revenue, and many of these revolve around pricing. However, it is important to be careful when you display your prices to the public. If you are deceiving people, even unintentionally, you could land yourself in legal trouble.

Price reductions

When you offer discounts, you must acknowledge the original price correctly. For example, when you put an ad in a catalog, you should identify the reference price’s source and explain to the readers that the price may be subject to change (unless you are sure that you will keep it the same). You cannot raise your reference price so the discount looks larger than it is.

Free offers

Deals that include a free item are very common in business, and they tend to work well if people like the products. This becomes a problem if the “free” item actually comes with a cost. Oregon law prohibits you from raising a package’s price to cover the item you said was free. You also cannot sell a bundle at its regular price while claiming one of the items (which the bundle included all along) is a free addition.

Your deals should be clever and tactful, but they should also be in good faith. Honesty can help you build a loyal customer base and avoid business law issues.