Bait-and-switch

Bait-and-switch is a form of fraud used in retail sales, but also employed in other contexts.

In retail sales

First, customers are "baited" by merchants's advertising products or services at a low price, but when customers visit the store, they discover that the advertised goods either are not available or are not as good as expected, or the customers are pressured by sales people to consider similar, but higher-priced, items ("switching").

Function

The intention of the bait-and-switch is to encourage purchases of substituted goods, making consumers satisfied with the available stock offered, as an alternative to a disappointment or inconvenience of acquiring no goods (or bait) at all, and reckoning on a seemingly partial recovery of sunk costs expended trying to obtain the bait. It suggests that the seller will not show the original product or service advertised but instead will demonstrate a more expensive product or a similar product with a higher margin.

Legality

In the United States, courts have held that the purveyor using a bait-and-switch operation may be subject to a lawsuit by customers for false advertising, and can be sued for trademark infringement by competing manufacturers, retailers, and others who profit from the sale of the product used as bait. However, no cause of action will exist if the purveyor is capable of actually selling the goods advertised, but aggressively pushes a competing product.

Likewise, advertising a sale while intending to stock a limited amount of, and thereby sell out, a loss-leading item advertised is legal in the United States. The purveyor can escape liability if they make clear in their advertisements that quantities of items for which a sale is offered are limited, or by offering a rain check on sold-out items.

In England and Wales, bait and switch is banned under the Consumer Protection from Unfair Trading Regulations 2008.[1] Breaking this law can result in a criminal prosecution, an unlimited fine, and two years in jail. In Canada, this tactic is illegal under the Competition Act.

Non-retail use

  • Bait-and-switch tactics are frequently used in airline and air travel advertising.[2]
  • Hotels widely use the form of bait-and-switch tactics known as 'resort fees'. They first attract customers by advertising the lower price (which appears on all promotional materials and rate comparison engines), and charge customers the mandatory "resort fee" when they arrive for check-in.[3]
  • Recruitment. Many employers and employment agencies systematically use bait and switch tactics. Advertising one position and after the candidate has submitted their CV or taken time off work to come to a face-to-face interview then subtly changing the nature of the position or offering a completely different position. Often there is no job at all and the "job advertisement" is simply a speculative trawl for CVs that may match HR requirements at some point in the future.[]
  • Home service companies such as in the carpet cleaning, air conditioning, and security system industries often use bait-and-switch.[4]
  • Professional wrestling has long used bait-and-switch tactics, promoting wrestlers and matches that either fail or refuse to appear or appear much differently than expected. A disclaimer on promotional material, "Card Subject to Change," is often used to justify or excuse this.[5][6]
  • "Bait-and-switch" also refers to a form of Internet trolling, which involves luring Internet users into watching certain things or entering certain prank websites using misleading thumbnails, icons, or links. An example of this is Rickrolling.[7]

Politics

In lawmaking, "caption bills" that propose minor changes in law with simplistic titles (the bait) are introduced to the legislature with the ultimate objective of substantially changing the wording (the switch) at a later date in order to try to smooth the passage of a controversial or major amendment. Rule changes are also proposed (the bait) to meet legal requirements for public notice and mandated public hearings, then different rules are proposed at a final meeting (the switch), thus bypassing the objective of public notice and public discussion on the actual rules voted upon. While legal, the political objective is to get legislation or rules passed without expected negative community review.

See also

References

  1. ^ http://www.legislation.gov.uk/uksi/2008/1277/schedule/1/made paragraphs 5 and 6
  2. ^ McArthur, Douglas (2008-04-30). "How does a $224 flight end up costing $826?". The Globe and Mail. Retrieved 2012. 
  3. ^ Hilton Settles Resort Fee Lawsuit "Archived copy". Archived from the original on 2011-07-26. Retrieved . 
  4. ^ Braun, John (2013-10-01). "Carpet Cleaners Educate Consumers on Bait and Switch". Newswire. Retrieved 2013. 
  5. ^ "Dean Ambrose Says Battleground Bait and Switch Was Best for Business," by Eric Gargiulo, CamelClutchBlog.com
  6. ^ "Archived copy". Archived from the original on 2015-07-04. Retrieved . 
  7. ^ "Rickroll", from Know Your Meme

External links


  This article uses material from the Wikipedia page available here. It is released under the Creative Commons Attribution-Share-Alike License 3.0.


Bait-and-switch



 
Connect with defaultLogic
What We've Done
Led Digital Marketing Efforts of Top 500 e-Retailers.
Worked with Top Brands at Leading Agencies.
Successfully Managed Over $50 million in Digital Ad Spend.
Developed Strategies and Processes that Enabled Brands to Grow During an Economic Downturn.
Taught Advanced Internet Marketing Strategies at the graduate level.



Manage research, learning and skills at defaultLogic. Create an account using LinkedIn or facebook to manage and organize your IT knowledge. defaultLogic works like a shopping cart for information -- helping you to save, discuss and share.


  Contact Us