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 did not find any evidence that the retailer had ever actually offered a pair of earrings at the aforesaid "regular price." Montgomery Ward was found guilty of _____.
A) price discrimination
B) price fixing
C) predatory pricing
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 of Diamond