Legal Definitions - bait advertising

Bait advertising, also commonly referred to as bait and switch, is a deceptive sales tactic where a seller advertises a product or service at a very attractive, often unusually low, price to entice customers. The seller, however, has no genuine intention of selling the advertised item at that price or in the advertised quantity. Instead, the true purpose is to 'bait' customers into the store or contact, only to then 'switch' them to a different, usually more expensive, product or service once they are engaged.

This practice is considered unfair and deceptive because it misleads consumers by creating a false impression of a bargain, only to then pressure them into a more costly purchase.

• Example 1: Electronics Store Promotion

  An electronics retailer advertises a popular 55-inch 4K smart TV for an unbelievably low price of $299 in its weekly flyer. A customer, excited by the deal, visits the store specifically to purchase this TV. Upon arrival, a salesperson informs them that the advertised TV is "out of stock" or "was a limited-time doorbuster that sold out within minutes." The salesperson then aggressively tries to convince the customer to purchase a similar, but much more expensive, model from a different brand, highlighting its "superior features" and "better value."

  This illustrates bait advertising because the store used an unrealistically low price for a desirable item to lure customers into the store, knowing they likely wouldn't be able to purchase it. The intention was to switch them to a higher-priced alternative once they were on the premises.

• Example 2: Car Dealership Lease Offer

  A car dealership runs an advertisement for a new compact SUV, promising a lease payment of "just $189 per month" with "no money down" for a specific model. A potential buyer visits the dealership, interested in the advertised lease. After a test drive, the sales representative explains that the $189/month offer applies only to a very basic model with no desirable features, or that it requires an extremely high credit score and a significant down payment not mentioned in the ad. They then steer the customer towards a higher trim level with a much higher monthly payment, claiming it's "a much better deal" for the features included.

  This demonstrates bait advertising because the dealership used an enticing, but misleading, low lease payment to attract customers. Their actual goal was to upsell customers to a more expensive vehicle or lease package once they were on the lot.

• Example 3: Home Service Discount

  A local plumbing company advertises a "whole-house drain cleaning for only $89" on a popular online coupon site. A homeowner books the service, expecting a comprehensive cleaning. When the technician arrives, they perform an initial inspection and declare that the advertised price only covers a very superficial "snaking" of one drain. They then present a list of "necessary" additional services, such as "hydro-jetting," "camera inspection," or "root removal," which dramatically increase the total cost to several hundred dollars, making the original $89 offer practically useless on its own for a true whole-house cleaning.

  This is bait advertising because the service advertised an extremely low price for a "whole-house drain cleaning" to get customers to book. Once on-site, they revealed the advertised service was inadequate for the implied task and pressured the customer into purchasing significantly more expensive services, which was their actual intent from the start.