[tadfisher]

This practice is an interesting play on expectations; namely, that a fire sale implies deep discounts on goods. It is similar to the tactic used at Black Friday at just about every major retailer: have a few major loss-leaders in your ad, and discreetly mark up everything else in the store.

Is this manipulative? I wouldn't call it that, at least not more than any other retail tactic. Consumers have more price information available to them than ever before, yet they are still amazingly susceptible to the idea that they are getting a good deal, nevermind that the widget that they are saving 25% on costs half as much on Amazon. If using psychology as a sales tool is unethical, then the idea of advertisement and "sales" must be as well.

[Decathect]

Free markets are only efficient if consumers act rationally. In addition to being unethical, manipulative marketing is bad for the economy. It's in everyone's long term interest to regulate false advertising.