Bait and Switch Cons

Bait and switch is one of the oldest fraud practices. When sellers use this dishonest tactic, they reel consumers in with the promise of a great deal. However, when buyers show up for the advertised product, theyre told that the item has been sold.

The bait is the low-priced product, which can seem like a deal thats too good to be true, and it is. If the item is actually in stock, there is probably only one or two available at the advertised price. The switch occurs when the consumer walks into the store looking for the item. Hell be told that while that item is no longer available, a similar item is available at a higher cost.

Full spectrum lending bait and switch practices refer to situations in which a mortgage professional tells a borrower that he can get an incredibly low interest rate. However, when the mortgage process is nearly over, the interest rate is changed, or the borrower is charged more than he was promised at the start of the deal.

Businesses That Rely On Bait and Switch

Some businesses are better known for using bait and switch practices than others. The types of companies who use bait and switch in advertising include:

• Car dealers: How many times have you seen an advertised car that had a ton of extra features while also being sold for an incredibly low price? When you walk into the dealership to buy the car, youre told that its been sold. Instead, they show you a similar car, but the price is thousands of dollars more. Car dealers are notorious for trying to fool buyers with bait and switch practices.
• Computer stores: Consumers often see computers advertised for low prices, finding out once they get to the store that the model they want is out of stock. However, sales staff will have other computers for you to look at, always at higher prices.
• Department stores: Those advertising inserts that come in newspapers and your mailbox often feature products at low, low prices. Such retailers use bait and switch practices fro a variety of products, ranging from mattresses to cameras.
• Electronic stores: Electronic equipment can be quite expensive, and newer models and updated technologies come out regularly. As a result, people are often baited and lured into electronic stores with advertisements of low price TVs and other high-tech equipment.

Avoiding the Bait and Switch

An educated consumer is less likely to fall victim to a bait and switch scam. Fortunately, it doesnt take a lot of insider knowledge to avoid being taken advantage of by retailers.

One of the smartest things you can do is to always read an advertisements fine print. Sellers count on people being too busy or too taken in by a great deal to notice the details in fine print. By taking the extra time to read everything in the ad, you can see what a stores rain check policy is (usually no rain checks allowed) and if the item is in limited supply (it will be).

If you feel youve been victimized by bait and switch practices, consider returning the high priced product you purchased if it''s not within your budget. While you may be considering filing a lawsuit, keep in mind that this type of legal action is costly, time consuming and difficult to prove.

Instead, reporting a store to the Better Business Bureau is a quick and relatively painless process. It can help the Bureau identify retailers who engage in this fraudulent practice and expose them to the general public.

Negative Effects for Victims and Perpetrators

While bait and switch scam artists usually make sure theyre well within the law, there are negative consequences for them as well as for the people they attempt to trick.

Consequences for the seller include:

• damaged reputation
• negative reports to the Better Business Bureau
• possible lawsuits.

Consequences for the buyer include:

• being taken advantage of
• not getting the product she wants
• paying a much higher price for an inferior product.

Resources

Ellis-Christensen, Tricia (n.d.) What is Bait and Switch? Retrieved March 17, 2008, from the Wisegeek Web site.