Outlet Store Prices: Are “Compare At” Tags Real?

Outlet malls promise brand names at a fraction of the "retail" price. But a series of consumer investigations and lawsuits over the past decade have raised a persistent question: a fraction of what price? For many outlet items, the "compare at" or "value" number on the tag may not be a price anyone, anywhere, ever actually paid.

Made-for-outlet merchandise

Much of what is sold in outlet stores today is not surplus from full-price stores. It is merchandise manufactured specifically for the outlet channel, often with different materials or construction. Because a made-for-outlet item was never sold at a full-price store, a "compare at" figure on its tag cannot be that item's former price — at best it is an estimate of what a similar item might sell for, and at worst it is simply an anchor to make the outlet price look like a bargain.

What "compare at," "value," and "suggested retail" really mean

These phrases are carefully chosen. Unlike "our original price," they do not claim the store itself ever charged the higher number. Regulators and courts have examined whether shoppers nonetheless understand these tags as a claim of real savings — and consumer surveys suggest many do.

Questions to ask at the outlet

Is this exact style sold at the brand's full-price stores? Does the item have a distinct outlet-only style number? Would I pay this price if the tag showed no "compare at" number at all? That last question is often the most clarifying one.

If an outlet "deal" influenced your purchase

We are investigating how reference prices are used on outlet and clearance tags. If you bought an item because a "compare at" or "value" price made the discount look substantial, tell us about it — a photo of the price tag is especially helpful. For background, see what false reference pricing is.

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