The California rule centers around the concept of “former price advertising.” According to California Business and Professions Code 17501:
“…the worth or value of an item advertised as a former price shall mean the prevailing market price…within three months immediately preceding the publication of the advertisement.”
In plain terms: if you advertise a strikethrough price (for example, $99 crossed out next to $59), that “original” price must have been the actual, prevailing price within the past 90 days.
If it hasn’t been offered at that price in the last 90 days, then you must disclose the date when that higher price was last in effect.
The rule aims to protect consumers from misleading discount claims — such as inflating the original price to exaggerate the perceived deal. And while it’s a California-specific regulation, its impact is national.
