1. Deceptive pricing is a widespread problem because
a. consumers rarely complain about it
b. it is very difficult to investigate and prove
c. it works
d. all of the above

2. Deceptive pricing generally involves
a. discounts from the advertiser's former or "regular" selling price
b. discounts from the manufacturer's suggested retail price (msrp) or "list" price
c. both of the above
d. neither of the above

3. True or false: manufacturers can require retailers to sell at the msrp

4. True or false: reduction from the msrp is generally an accurate indicator of the amount the consumer is saving

5. Your store's sales are lagging, in part because the public perception is that your prices are higher than those at the "big box" stores. You want to counter that perception by promising to match or beat any competitor's prices on any item you carry. You want to advertise that you have the "guaranteed lowest price" on every item you sell.  To make that claim without violating your state's little-FTCA, what must you do? (Note: there are two options)

6. If your business was located in New York City, how would that change your answer to #5?

7. You own a furniture store and you always price your merchandise at 20% below the msrp.  (For example, if the “msrp” for a couch is $1,000, you sell it for $800.) You want to advertise a “50% off sale” for one week and sell that couch for $500.00.  Is there anything illegal about your plan?

8. You have just been appointed CEO of a major retail chain whose sales have been dropping. In order to boost sales you want to aggressively promote reductions from regular selling prices. Your plan is this: For every item that you order, your buyers establish an "initial markup" (IMU) based on your usual markup (your profit margin for that product line). You then establish a second price, called the "promotional markup" (PMU), or "original price," that is substantially higher than the IMU. You sell items at the "original price" for at least 10 days in each six-month selling season. After that period you reduce the price to the IMU. You then advertise to the public short-duration sales (e.g., "25% off original price, four days only") for the remainder of the six-month selling season. Are you going to have a problem with the FTC or the state attorney general?