California’s Strict Rules are Turning Fake Discounts into Real Class Action Lawsuits

California is setting the pace and raising the stakes for online retailers facing deceptive pricing class actions, with recent cases and enforcement actions turning reference pricing from a clever marketing tool into a major legal risk. As plaintiff firms and regulators sharpen their focus on fake discounts, strike through pricing, and algorithmic surveillance pricing, brands that sell into California (even without a store in the state) now need to treat pricing disclosures like high risk compliance territory, not just marketing copy.

Why Deceptive Pricing Suits are Rising

According to Eversheds Sutherland’s recent analysis on JD Supra, online retailers are facing a significant and growing wave of class actions challenging the way they present prices, discounts, and original list prices on their sites. These suits typically attack reference pricing or comparison pricing, for example, an item shown as $49 with a struck through was $99 label, where the higher price was…