Final answer:
The scenario with 'The Bay' constitutes deceptive pricing, which involves false representation of sales or prices to create an artificial sense of urgency for consumers.
Step-by-step explanation:
The instance described where 'The Bay' was fined for promoting a bike sale that didn't actually exist is an example of deceptive pricing. This practice involves misrepresenting the price or nature of a product or service in order to lure consumers into the belief that they are getting a better deal than they really are. This can include a false representation of a 'sale' when prices haven't truly been reduced or stating that a price is part of a limited-time offer when it is the regular price.
In comparison, other unethical pricing practices mentioned are:
- Price discrimination: Charging different prices for the same product to different consumers, where the difference in price is not due to cost differences.
- Price fixing: An agreement among competitors to raise, fix, or otherwise maintain the price at which their goods or services are sold, not allowing for natural market competition.
- Predatory pricing: Setting prices so low that other suppliers cannot compete, and are thus forced out of the market.
While predatory pricing and price fixing both aim to manipulate market competition for a firm's own benefit and are illegal, price discrimination can be legal in some scenarios but is often subject to specific laws and regulations. The scenario with 'The Bay' falls squarely into the category of deceptive pricing, which is a dishonest practice meant to mislead consumers.