If you have shopped at Best Buy recently, you may have noticed a line on product pages that reads something like "Comp. Value $X, our price $Y." The idea is straightforward: show what a competitor charges so the retailer's own price looks like a deal. But the practice, as Linus Sebastian of Linus Tech Tips recently pointed out in a video titled "This Should Be Illegal...", raises serious questions about what that comparison price actually represents.

Best Buy is far from the only retailer doing this. As more online stores transform into marketplaces where third-party sellers list alongside the retailer's own inventory, reference pricing has become a fuzzy tool. The "Comp. Value" figure might come from a seller no one has heard of, an out-of-stock listing, or a price that was never actually offered by a mainstream competitor. The result is a discount that looks real but may be illusory.

Sebastian, who is an investor in Framework Computer and HexOS, discussed the issue in a recent episode. The video's chapters break down the problem: a segment on Best Buy's "Comp. Value" (2:10), FOMO marketing (3:23), a question of legality (4:37), and the broader context beyond Best Buy (6:14). The discussion also covers what should be done (7:07), the role of price trackers (9:19), and what consumers can do to protect themselves (12:05).

The problem with reference pricing

Reference pricing is a classic retail tactic. A store lists a higher "original" price or "compare at" price to make the sale price look like a bargain. When done honestly, it can help shoppers assess value. But when the reference price is pulled from thin air, it is deceptive.

Best Buy's "Comp. Value" label does not specify which competitor or what time period the comparison refers to. In some cases, the price may come from a third-party marketplace seller on the same Best Buy website. That means Best Buy could be comparing its own price to a price set by a random vendor on its own platform. The "discount" becomes a circular argument.

Sebastian argues that this kind of pricing lacks transparency. The video's title suggests the practice should be illegal, though the discussion acknowledges that current regulations may not cover this specific scenario. The Federal Trade Commission in the United States has rules against deceptive pricing, but enforcement has been spotty, and the rules were written before marketplace models became widespread.

Not just Best Buy

The issue is not limited to one retailer. As businesses increasingly operate as hybrid retailers and marketplaces, the line between the store's own pricing and third-party pricing blurs. Amazon, Walmart, and others use similar reference price mechanisms. A "list price" on Amazon might come from the manufacturer's suggested retail price (MSRP), which no one actually charges, or from a random seller's inflated price.

Sebastian's segment titled "It's Not Just Best Buy" (6:14) likely expands on this pattern. The video argues that the entire industry has an incentive to make discounts look bigger than they are. Consumers see a crossed-out high price and think they are getting a steal. In reality, they may be paying the usual going rate, or even more than they would elsewhere.

What should be done?

During the segment "What Should Be Done?" (7:07), Sebastian presumably discusses potential remedies. These could include clearer labeling requirements, a definition of what qualifies as a legitimate reference price, or enforcement of existing laws. Some countries have strict rules; for example, in the European Union, reference prices must reflect the lowest price charged in the past 30 days. The U.S. does not have a similar blanket rule, though some states have their own consumer protection laws.

One practical tool Sebastian recommends is price trackers (9:19). Services like CamelCamelCamel or Keepa let shoppers see historical prices for a product across different retailers. That gives a realistic view of what something actually costs, regardless of what the current reference price claims. For consumers, using a price tracker is one of the most straightforward ways to cut through the noise.

What consumers can do

The video closes with actionable advice for shoppers (12:05). Beyond using price trackers, Sebastian advises checking multiple retailers, reading reviews carefully, and being skeptical of large discounts that seem too good to be true. If a product is marked 50% off but the price tracker shows it has rarely sold for more than the current price, the discount is fictional.

Another tip: look at the seller. If the reference price comes from a third-party marketplace seller with few ratings, it is probably not a reliable comparison. Stick to known, reputable retailers when assessing value.

The broader picture

Best Buy's "Comp. Value" is a symptom of a larger shift in online retail. As companies like Best Buy, Walmart, and Target transition to marketplace models, they gain the ability to show prices from countless sellers. That flexibility can benefit consumers by increasing choice, but it also opens the door to manipulation.

Regulators are starting to pay attention. In 2024, the FTC updated its guidelines on deceptive pricing, but the changes were modest. Advocacy groups have called for stronger rules that specifically address marketplace reference pricing. So far, no major enforcement action has targeted Best Buy's "Comp. Value" practice.

Sebastian's video title may be hyperbolic, but the question is valid: should it be illegal to show a comparison price that has no clear, verifiable source? For now, the answer depends on how aggressively regulators interpret existing laws. For shoppers, the best defense is a skeptical eye and a good price tracker.

Final thoughts

The conversation around reference pricing is unlikely to disappear. As more retailers adopt marketplace models, the potential for confusion and deception grows. Consumers who stay informed and use the tools available can avoid falling for phantom discounts. Meanwhile, advocates will continue to push for clearer rules. Whether Best Buy's "Comp. Value" will ever be deemed illegal remains uncertain, but the scrutiny it faces is a sign that shoppers are paying attention.

The video discussed is a Linus Tech Tips episode titled "This Should Be Illegal..." available on YouTube. The opinions expressed are those of Linus Sebastian and do not necessarily reflect the views of SysCall News.