The Frustrating Reality of Pricing Discrepancies

Some version of this scenario has happened to a lot of us: you order a pizza after seeing a great deal on the menu board, only to be charged a few dollars more at checkout. Sound familiar? That’s exactly what happened to Wendy. She wrote to TrustDALE about her experience and asked us: Should I have to pay the higher price if the advertised price is lower?

 

It’s a fair question—after all, consumers expect businesses to honor the prices they advertise. But as it turns out, truth in advertising laws aren’t as strong as many people think, and businesses often have leeway when it comes to pricing errors. 

 

Truth in Advertising: Myth vs. Reality

Many consumers understandably believe there are strict laws requiring businesses to honor advertised prices. Sounds like a fairly standard consumer protection, right? Well, we hate to break it to you, but these laws actually vary pretty widely across the United States. In fact, outside of California, they’re pretty weak. In most states, if a retailer displays an incorrect price due to an honest mistake, they aren’t legally required to honor it.

 

However, reputable businesses often choose to stand by their advertised prices as a goodwill gesture. If the discrepancy is minor, many companies will make the adjustment to maintain customer trust. But if the difference is substantial, they may cite the mistake and charge the correct (higher) price. Within the scope of the law, that means you’re going to have to shell out the extra cash – with few exceptions. 

 

Must Businesses Honor Prices?

While most businesses get some flexibility with pricing mistakes, there are exceptions. One major industry where advertised prices must be honored is auto sales. The Federal Trade Commission (FTC) has been attempting to firm up the consumer protections for auto sales and loans since January 2024 with the CARS Rule. This rule will further require car dealerships to stick to an advertised price on a vehicle, with the only legal add-ons being tax, tag, and title fees. The CARS Rule also mandates that consumers must be provided informed consent before a dealership can legally add any additional fees or charges. However, this bit of legislation received pushback from the auto dealership industry through the Fifth Circuit Court of Appeals, which postponed its July 2024 effective date to September 30, 2025. (We’ll be watching closely to see what happens with the CARS Rule until that time).

 

However, even in auto sales, there are exceptions. If a price is drastically incorrect—say, a dealer advertises a $40,000 vehicle for $4,000—they may be able to claim it was a clear mistake. But if the price is off by a few hundred dollars, they’re likely required to honor it unless they can prove it was an accidental error.

 

Per the FTC’s guidance:

“Get your offer details (including discounts) in writing. Walk away if the dealer doesn’t have the car you want or won’t honor the price it sent you. Then report the dealer to the FTC.”

Another scenario where businesses may have to honor a price is if the mistake appears intentional. Bait-and-switch advertising—where a business lures customers in with one price and then refuses to sell at that price to push a more expensive alternative—is illegal. However, proving bait-and-switch can be difficult and often requires clear evidence that the business acted in bad faith.

 

 

What Consumers Can Do

So, what can you do if you encounter a pricing discrepancy? Here are some practical steps:

  • Ask for an adjustment – Many businesses will honor a mistake if you politely point it out.
  • Check local laws – Some states have consumer protection laws that require businesses to honor advertised prices.
  • Watch for fine print – If an ad states “prices subject to change” or “while supplies last,” the business may not be obligated to honor the lower price.
  • Report deceptive practices – If you suspect bait-and-switch tactics, file a complaint with the FTC or your state’s consumer protection agency.

The Bottom Line

While it’s frustrating to be charged more than an advertised price, most businesses aren’t legally required to honor mistakes. However, good companies prioritize customer satisfaction and will often work with consumers when errors occur. If you ever feel misled by pricing, know your rights, ask for a fair resolution, and don’t be afraid to take your business elsewhere.

 

Have you ever encountered a pricing discrepancy? How did the business handle it? Share your experience in the comments!