Amazon Sued Over Fake Sale Markdowns

Two consumers recently sued Amazon over fake discounts advertised during Prime Day this past July.

They allege that big percentage discounts are offered off of fake list prices to make shoppers think they are saving a bundle. In fact, the lawsuit asserts, that the savings are often far less than claimed, that the same sale price had been offered previously, or that Amazon never charged that stated list price in the previous 90 days.

As an example, the complaint says this headphone was supposedly 44% off:

The consumers’ lawyers contend:

But, in fact, Amazon does not deliver the promised 44% off because it uses a Fake Prior Amazon Price in calculating 44% supposed savings. While Amazon lists a Fake Prior Amazon Price of $134.99, in fact, these Skullcandy headphones have often been offered at the same “sale” price during the past 90 days, and never cost more than $110. … As the headphones were never offered on Amazon for the fake strike through price of $134.99, a customer buying these headphones during Prime Day 2025 overpaid because Amazon did not deliver the 44% savings it promised.

MrConsumer checked CamelCamelCamel.com and in fact that headset was offered at the full $134.99 price for about 10 separate days in the first half of 2025.

Amazon has made some modest strides in explaining what it means by “list price” in its product listings. That almost invisible little “i” reveals their definition.

*MOUSE PRINT:

And you can see Amazon’s own price history chart by clicking the Rufus button at the top left of the screen.

That said, for many years, Amazon and others have used exaggerated or rarely charged list prices to give shoppers a false sense of the savings being advertised and the product’s value.

It may be a while before this case proceeds because the judge placed a temporary hold on the proceedings while a similar case is being heard in a Washington appeals court.