Was/Now Prices on Amazon: What the FTC Deceptive Pricing Guides Require

Under the FTC’s Guides Against Deceptive Pricing (16 CFR Part 233), a “was/now” price holds up only if the “was” price is one you actually offered openly, in good faith, for a reasonably substantial period of time. A “compare at” or list price holds up only if substantial sales really happen at that price in your trade area. A price raised just so it can be “cut,” a trivial reduction, or a “free” item paid for by a higher main price are the patterns the Guides call deceptive.

This guide maps Part 233, plus the FTC’s separate guide on the word “Free” (16 CFR Part 251), onto the price claims an Amazon seller writes. It does not rule on any specific price; it gives you the FTC’s tests to run against your own price history.

What the Guides Are, and What They Are Not

Part 233 dates from 1967 (32 FR 15534, Nov. 8, 1967, per the eCFR, data checked 2026-10-09). Its examples involve fountain pens and suburban stores, but the principles carry over to online offers.

16 CFR 1.5 explains what a guide is: “Industry guides are administrative interpretations of laws administered by the Commission for the guidance of the public in conducting its affairs in conformity with legal requirements.” It adds: “Failure to comply with the guides may result in corrective action by the Commission under applicable statutory provisions.”

So the Guides are the FTC’s reading of Section 5 of the FTC Act (15 U.S.C. 45), not a penalty schedule. The FTC’s Advertising FAQ’s: A Guide for Small Business (edited January 2025, data checked 2026-10-09) says “The penalties depend on the nature of the violation.” It lists cease-and-desist orders, refunds to buyers, and corrective ads as outcomes, and says a company under such an order may face a fine of $53,088 per day per ad if it violates the law in the future.

The Guides also do not govern Amazon’s own reference-price display. Which strikethrough or “List Price” figure Amazon shows is set by Amazon’s policies, covered in our guide to Amazon’s price match and Fair Pricing rules. This article covers the price claims you author.

The Five Price Claims at a Glance

Section numbers refer to 16 CFR Part 233 (eCFR, data checked 2026-10-09) unless marked Part 251.

Former-Price Claims: When “Was $X” Holds Up

Section 233.1 is the one most Amazon sellers need: “If the former price is the actual, bona fide price at which the article was offered to the public on a regular basis for a reasonably substantial period of time, it provides a legitimate basis for the advertising of a price comparison.”

The “was” price must be real. The Guides’ example is a retailer whose normal pen price is $7.50. He raises it to $10, keeps it “for only a few days,” then advertises “Were $10, Now Only $7.50!” Section 233.1(c) calls this “obviously a false claim.” The Amazon version is a price bumped up briefly before a Prime event, then “reduced” back to where it always sat.

No sales at the old price is not automatically a problem. A former price “is not necessarily fictitious merely because no sales at the advertised price were made” (233.1(b)). It must still have been “openly and actively offered for sale, for a reasonably substantial period of time, in the recent, regular course of his business, honestly and in good faith.” Do not imply units sold at that price, as in “Formerly sold at,” “unless substantial sales at that price were actually made.”

Old prices go stale. Section 233.1(d) also lists a price “not used in the recent past but at some remote period in the past” without disclosure, and one “not maintained for a reasonable length of time, but was immediately reduced.” A launch price from two years ago, after months lower, fits that list.

The cut has to mean something. Section 233.1(e): “An advertiser who claims that an item has been ‘Reduced to $9.99,’ when the former price was $10, is misleading the consumer.”

Part 233 sets no number of days for “reasonably substantial.” The 30-day figure sellers often quote comes from Part 251 and defines the regular price behind a “free” offer. For was/now claims, we suggest a dated price log showing how long the “was” price was offered.

“Compare At” and “Sold Elsewhere” Claims

Section 233.2 allows comparisons with other sellers’ prices: “if a number of the principal retail outlets in the area are regularly selling Brand X fountain pens at $10, it is not dishonest for retailer Doe to advertise: ‘Brand X Pens, Price Elsewhere $10, Our Price $7.50’.”

The test is that the higher price must not “appreciably exceed the price at which substantial sales of the article are being made in the area.” The counter-example is a “Retail Value $15.00” claim when “only a few small suburban outlets in the area charge $15.” Online, that is citing one high-priced listing while most sellers sit near your price.

“Compare at” for a different product needs two things under 233.2(c): “it is made clear to the consumer that a comparison is being made with other merchandise,” and that merchandise is “of essentially similar quality and obtainable in the area.” A private-label item labeled “Compare at $49” next to a name brand must meet both.

The Guides define trade area as “the area in which he does business” but were written for local stores. For a seller shipping across the US, we read it as the market you sell into, which makes widely available prices for that product the benchmark.

List Price and MSRP Claims

Section 233.3 starts from how buyers read a list price: “Many members of the purchasing public believe that a manufacturer’s list price, or suggested retail price, is the price at which an article is generally sold.”

A list price “will not be deemed fictitious if it is the price at which substantial (that is, not isolated or insignificant) sales are made in the advertiser’s trade area.” But “if the list price is significantly in excess of the highest price at which substantial sales in the trade area are made, there is a clear and serious danger of the consumer being misled.”

The section splits the duty by role:

• Resellers should check whether a suggested price “is in fact the price regularly charged by principal outlets in his area” (233.3(e)). If only outlets “accounting for only an insubstantial volume of sales in the area” follow it, “advertising of the list price would be deceptive” (233.3(f)).
• Manufacturers selling nationally need not police every local price. A list price set “in good faith (i.e., as an honest estimate of the actual retail price)” that does not “appreciably exceed the highest price at which substantial sales are made” is not deceptive (233.3(g)).

A private-label brand that sells only on Amazon at $39 and prints “MSRP $59” on its packaging photo has no outlets making substantial sales at $59. That is the gap to close before using the number.

“Free,” BOGO, and Percent-Off-With-Purchase Offers

Section 233.4 covers bargains tied to buying something else, such as “Free,” “Buy One—Get One Free,” “2-For-1 Sale,” and “50% Off.” It names three ways these deceive: the seller “increases his regular price of the article required to be bought, or decreases the quantity and quality of that article, or otherwise attaches strings.” The fix: “all the terms and conditions of the offer should be made clear at the outset.”

The FTC’s Guide Concerning Use of the Word “Free” (16 CFR Part 251, data checked 2026-10-09) adds detail:

• Regular price. The price at which the seller “has openly and actively sold the product” for “a reasonably substantial period of time, i.e., a 30-day period.” Where prices fluctuate, it is “the lowest price at which any substantial sales were made during the aforesaid 30-day period” (251.1(b)(2)). A BOGO built on a price raised last week fails this.
• Conditions next to the offer. Terms “should appear in close conjunction with the offer”; a footnote reached by an asterisk “is not regarded as making disclosure at the outset” (251.1(c)).
• Frequency. A single size “should not be advertised with a ‘Free’ offer in a trade area for more than 6 months in any 12-month period,” with at least 30 days between offers and no more than three in 12 months (251.1(h)).
• Synonyms. Calling it a “gift” or “bonus” does not cure a failing offer (251.1(i)).

Amazon’s promotion tools set up the mechanics; the FTC tests apply to the price underneath. See Amazon coupons vs deals for the tools.

Wholesale, Factory, Limited, and Advance Price-Increase Claims

Section 233.5 applies one principle to the remaining bargain words: the claim must be true. Retailers “should not advertise a retail price as a ‘wholesale’ price,” should not claim “factory” prices “when they are not selling at the prices paid by those purchasing directly from the manufacturer,” and should not “make a ’limited’ offer which, in fact, is not limited.”

Seconds or irregular goods must disclose “that the higher comparative price refers to the price of the merchandise if perfect.” An offer telling shoppers to buy before the price goes up is improper “where they do not in good faith expect to increase the price at a later date.”

Where These Claims Show Up on an Amazon Offer or Storefront

Section 233.3(b) says “The mechanics used are not of the essence”; the part covers “any means employed for placing such prices before the consuming public.” On Amazon, your price claims sit in:

• Title, bullets, and description (“Was $49, now $29”); see our Amazon listing optimization guide.
• Images and packaging photos, including printed MSRPs.
• A+ content and your Brand Store comparison charts.
• Off-Amazon ads: social posts, email, influencer copy.
• Any list price you submit for your offer.

Price changes just before Prime Day or Black Friday create the short “was” window 233.1 describes; our Amazon Q4 checklist is where a price-history check fits into event prep.

Checklist Before a Was/Now Price Goes Live

1. Was the “was” price openly offered for a reasonably substantial period, recently? (233.1(b), (d))
2. Does the copy imply sales at the old price? Then substantial sales must have happened. (233.1(b))
3. Is the reduction meaningful? $10 to $9.99 is the FTC’s own misleading example. (233.1(e))
4. For “compare at,” do substantial sales happen at that price, and is a different product labeled as such? (233.2)
5. For list price or MSRP, do substantial sales happen at that price? (233.3)
6. For free or BOGO, is the main price your 30-day regular price, with conditions next to the offer? (233.4; 251.1(b), (c))
7. Are your “limited” and “factory” claims, and any advance price-increase claim, literally true? (233.5)
8. Can you show it? Keep dated price records for every comparison price.

Amazon may separately request documents through its own tools; see Manage Your Compliance.

Frequently Asked Questions

Are the FTC Guides Against Deceptive Pricing legally binding?

They are guides, which 16 CFR 1.5 calls “administrative interpretations of laws administered by the Commission.” The law underneath is Section 5 of the FTC Act. The Guides show how the FTC reads that law for price claims; they do not set fines on their own.

How long must a price be in place before I advertise it as the “was” price?

Part 233 gives no number of days; it asks for a price offered “for a reasonably substantial period of time, in the recent, regular course of” business. The 30-day period in Part 251 defines the regular price behind a “free” offer, not the was/now test.

Can I show a strikethrough price if I never sold any units at it?

Section 233.1(b) says a former price “is not necessarily fictitious merely because no sales at the advertised price were made,” if it was openly offered in good faith for a reasonably substantial period. Do not word it as though units sold at that price.

Bottom Line

Every comparison price you publish needs a fact behind it: a “was” price you really offered for a substantial period, a list or “compare at” price backed by substantial sales, and a “free” offer built on your regular price with conditions up front. Keep the dated records. The same truth-in-advertising logic covers reviews and origin claims; see our guides to the FTC consumer reviews rule and Made in USA claims.