California's 90 Day Price Rule is designed to protect consumers from false and misleading advertising, particularly the practice of inflating "compare at" or "regular" prices.
Understanding the 90 Day Price Rule
Under California Civil Code Section 17501, retailers cannot advertise a "former price" or "compare at" price unless that price was the actual selling price within the previous 90 days. The item must have been offered at that higher price for a reasonably substantial period during that time.
How Retailers Violate This Law
Common violations include:
Inflated Reference Prices
A store advertises "Compare at $200, Now $99!" when the item was never actually sold at $200, or was only offered at that price for a brief period more than 90 days ago.
Manufacturer's Suggested Retail Price (MSRP) Abuse
While MSRP can be used as a reference, it must represent the actual prevailing market price. If no retailers actually sell the item at MSRP, using it as a comparison is deceptive.
Perpetual "Sales"
When an item is always on "sale," the sale price becomes the actual price, making the "regular price" deceptive.
Real-World Examples
Recent class action lawsuits have targeted major retailers for:
- Advertising "Compare at $300" prices on merchandise never sold at that price
- Using inflated MSRP values that don't reflect actual market prices
- Creating fictional "original prices" to make discounts appear larger
Why This Matters
Deceptive pricing prevents consumers from making informed purchasing decisions. When you think you're getting a 50% discount but the "regular price" was fictitious, you may be paying more than the item's actual value.
Legal Remedies Available
Victims of false advertising in California can pursue:
- Recovery of money spent based on false advertising
- Statutory damages under California's consumer protection laws
- Injunctive relief to stop the deceptive practices
- Attorney's fees and costs
Class Action Lawsuits
Because pricing violations typically affect many consumers, these cases are often brought as class actions under California's Unfair Competition Law (UCL) and False Advertising Law (FAL).
Documenting Price Violations
If you believe you've been misled by false pricing:
- Keep all receipts and purchase records
- Take photos of price tags and advertisements
- Screenshot online listings showing the prices
- Note the dates of your observations
- Keep any promotional materials or emails
How We Can Help
Javitch Law Office has successfully represented consumers in class action lawsuits against major retailers for violating California's pricing laws. We work on a contingency basis, meaning you pay nothing unless we recover compensation for you.
Contact us for a free consultation to discuss whether you have a claim against a retailer using deceptive pricing practices.
FAQ
What is California's 90-day price rule?
Under California Business and Professions Code § 17501, a retailer can only advertise a "regular" or "original" price if the item was actually offered at that price within the past three months. Advertising a fake "was" price to inflate the perceived discount is illegal.
Can I sue a retailer for violating the 90-day price rule?
Yes. California's Unfair Competition Law, False Advertising Law, and Consumer Legal Remedies Act allow consumers to sue and recover restitution, injunctive relief, and in some cases statutory damages.
What evidence should I preserve?
Screenshots of the advertised "regular" price and "sale" price, receipts, and any prior pricing history you can capture (Wayback Machine, price-tracking sites like camelcamelcamel or Honey).