Before it closed its doors, Montgomery Ward advertised a pair of diamond earrings for $399 that it said had a regular price of $2,199. When the Better Business Bureau examined the incident, it found no evidence the retailer had ever actually offered a pair of earrings at afore said "regular price." Montgomery Ward was found guilty of
A) price discrimination.
B) price fixing.
C) setting illegal price differentials.
D) deceptive pricing.

Question

Quizplus · Accepted Answer

Deceptive pricing practices are outlawed under Section 5 of the Federal Trade Commission Act. An example of deceptive pricing would be to mark merchandise with an exceptionally high price and then claim that the lower selling price actually used represents a legitimate price reduction.

Before It Closed Its Doors, Montgomery Ward Advertised a Pair