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Can I offer discounts or promotions without violating pricing laws in California? What are the requirements?

Yes, businesses can offer discounts or promotions in California as long as they comply with pricing laws and regulations. The requirements vary depending on the type of discount or promotion offered.

Discounts on Prescription Drugs

For discounts on prescription drugs, California law requires the Department of Health Care Services to negotiate drug discount agreements with manufacturers to provide discounts for single-source and multiple-source prescription drugs through the program [1.1](#[1.2])[1.3](#[1.5])[1.6](#[1.7]). The department shall attempt to negotiate the maximum possible discount for an eligible Californian. The department shall attempt to negotiate, with each manufacturer, discounts to offer single-source prescription drugs under the program at a volume-weighted average discount that is equal to or below any one of the benchmark prices [1.1](#[1.2])[1.3](#[1.5])[1.6](#[1.7]).

Discounts on Goods and Services

For discounts on goods and services, California law does not prohibit businesses from offering discounts or promotions. However, businesses must comply with California’s Unfair Competition Law, which prohibits false or misleading advertising [2.1](#[2.1]).

Businesses must ensure that the discount or promotion is not false or misleading and that the advertised price is not inflated to make the discount appear larger than it actually is [2.1](#[2.1]). Additionally, businesses must comply with any applicable federal or state laws and regulations regarding pricing and advertising [2.1](#[2.1]).

Conclusion

Businesses can offer discounts or promotions in California as long as they comply with pricing laws and regulations. For discounts on prescription drugs, businesses must comply with the requirements set forth by the Department of Health Care Services [1.1](#[1.2])[1.3](#[1.5])[1.6](#[1.7]). For discounts on goods and services, businesses must ensure that the discount or promotion is not false or misleading and that they comply with any applicable federal or state laws and regulations regarding pricing and advertising [2.1](#[2.1]).

Source(s):
Jurisdiction

California