Amazon is fundamentally changing how it displays discounts to build greater trust with its customers.
Starting May 18, 2026, the company will adjust how it calculates the 'typical price,' the figure used to show a strikethrough saving. If a product has been sold at a promotional price for more than half of the preceding 90 days, those promotional prices will be included when calculating the typical price. This change effectively lowers the reference price, resulting in smaller but more honest “% off” claims that better reflect the item's actual recent selling history. It’s a move designed to align the displayed savings with the “Price history” graph already visible on many product pages.
This policy shift comes just ahead of Prime Day, Amazon’s biggest sales event, and is a direct response to mounting pressure. For months, regulators in the United States, United Kingdom, and European Union have been scrutinizing deceptive pricing practices across the retail industry. By making this change now, Amazon is proactively getting ahead of potential legal challenges and reinforcing its messaging around “validated savings” and “genuine deals.”
The causal chain for this decision stretches back several years. First, a wave of global regulation has pushed for greater price transparency. This includes the UK’s CMA guidance on reference pricing, California’s “Honest Pricing” law, and a key EU court ruling mandating that discounts be based on the lowest price from the prior 30 days. These rules created a complex compliance landscape, encouraging a multinational platform like Amazon to adopt a stricter, more harmonized standard.
Second, Amazon has been facing direct legal and public pressure over its pricing algorithms. Cases like the FTC lawsuit and allegations surrounding its “Project Nessie” algorithm, which reportedly raised prices, have put the company’s pricing strategies under a microscope. These events have amplified scrutiny from both regulators and consumers, creating a strong incentive for Amazon to make its pricing practices more transparent and defensible.
Ultimately, this change represents a strategic trade-off. In the short term, some deals may appear less impressive, and sellers who rely on constant promotions will need to adapt. However, the long-term benefit is a significant boost in consumer trust and a reduction in regulatory risk. Amazon is choosing credibility over inflated discount figures, a move that could strengthen its market position in an era of increasing consumer skepticism.
- Glossary
- Reference Price: The original or former price of an item used to highlight a discount. Amazon refers to this as the "typical price."
- Prime Day: A major annual multi-day sales event on Amazon, available exclusively for its Prime members.
- FTC (Federal Trade Commission): A U.S. government agency that enforces consumer protection laws and antitrust laws.