A reference price might be considered deceptive if

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BlackTom AI · Accepted Answer

Understanding the concept of a reference price in consumer protection helps evaluate each option. 
Option 1: 'the reference price has changed more than once in the past 12 months.' While frequent changes can be suspect, this alone does not prove deception; it depends on whether the changes reflect legitimate pricing adjustments or misleading practices. 
Option 2: 'it reflects actual manufacturing costs plus 50 percent.' A markup of this kind could be a legitimate calculation, depending on the product, margins, and disclosure; it does not inherently indicate deception unless the base costs or profit margin are misrepresented. 
Option 3: 'the reference price is more than two times the cost of the item.' A large markup relative to cost may raise questions, but it could be justified by factors like brand positioning, overhead, or distribution costs; again, not inherently deceptive without context. 
Option 4: 'the reference price has been inflated or is fictitious.' This directly signals deception because an inflated or fictitious reference price misleads consumers about what a typical price is, creating a false sense of advantage and violating truthful advertising principles. 
Option 5: 'the internal reference point is different from the external reference point.' A mismatch between internal and external references might confuse consumers or indicate poor pricing communication, but it does not by itself prove deception unless it is used to mislead about value. 
In light of these considerations, option 4 identifies the specific deceptive scenario: an inflated or fictitious reference price that misleads consumers about the actual price.”

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A reference price might be considered deceptive if

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