What is the term for marking up a "regular" price in order to advertise a false "sale"?

I've heard it called gouging...don't know if there are any other names.

Its not illegal, the manufacturer has a SUGGESTED retail price, and if someone is dumb enough to fall for the false markup, overinflated price and fake markdown, they get what they deserve. A retailer can sell an item for anything they can get for it....for example, the people who sold their Nintendo WII's for way over market value...it is frowned upon, and often leads to the manufacturer cutting off the supply to the offending store. There is an old saying, "Let the Buyer Beware"....which means its up to smart consumers like you to know how to read a price tag and be an educated consumer. Furniture stores and jewelry stores are famous for this kind of practice....and people fall for it all the time. No one who has a SALE all the time is giving the best price all the time. The best deals will be at places that have fixed prices about 80% of the year, then have sales a couple times a year.

Also, have you ever noticed that the stuff in the stores the day after Thanksgiving isn;t the same as the merchandise they usually carry? Thats because they buy junk that looks like the regular stuff, but is inferior in quality, and it costs them $10, they mark it $40, then give you half off! Its not the same as their regular $40 item, or they would be losing money selling it at half off right away. Better to wait for end of season sales on quality brand names instead of stores "private labels" aka generics. The real deals are when the stock is picked over at the end of the season.

Gouging

"Fraud" comes to mind, but I think you're right. There is another term that marketers use but I can't recall it.

Yes, its called "false advertising".

Or, "lying".