Banana Republic does this. Their regular prices are generally inflated and they offer 30-40% off at least once per week. Not sure if it's illegal but it's funny because the only day they really seem to be busy is when their items are all 40% off (usually every Wednesday).
If you didn't know any different you'd be enticed to buy with their "40% off today only" signs, only to find out later the same thing happens every week
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