I put "compare at price" for all the products on my website which means that I put the original price for the product that I got from my supplier and put a 20% more of the actual price for the "compare at price" to show that there is discount but actually it is the original price at the first place. Is this considered misleading and can cause misrepresentation?
Example: Product A actual price is 500$. I added 20% more to the price for the "Compare at Price" box which equals to 600$. So, when customer are watching it, they will see "Save 100$" as if there is a discount but actually it is the original price.
There are different schools of thought with this. When I had a brand we focused on an honest, straightforward approach so would do compare price only if there was an actual discount (like overstock, seasonal, etc).
It's common to have permanent discounts, that can work to catch 1 time shoppers to make them feel like they're getting a deal, but long term if everything is always on discount then it's not really a discount, it can turn people off and diminish your sales ability when you actually do have discounts.
A strategy I like doing for a variety of decisions is asking customers directly. We would send out emails asking for feedback, what products they want next, etc. This is a case where you could ask customers what they think about it, and share your logic behind it.
From Google Merchant Center perspective: if you have sold the item at its original price in recent history and now offer a sale price this is fine.
If you have never sold an item at its original price, then this is misleading and grounds for suspension.
So permanent discounts, original prices that have never been sold at, is not allowed.
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