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What is a “bait and switch” fraud?

One reason for business litigation is when a company is accused of fraud. A common example of this is known as a bait and switch.

Essentially, a bait and switch occurs when products are advertised in a certain way, but the reality is much different. A different product may be substituted, or significant changes could be made that do not align with the initial advertisement.

How could this occur?

For example, say that you run a business and want to buy company cars for all of your employees. You see an advertisement for a vehicle that meets your needs and fits the company’s budget.

But when you go to the dealership, they tell you that they don’t actually have any of the advertised vehicles available. They claim they can get them, but only at a much higher price point.

Instead, they try to talk you into buying a different vehicle. This one may cost more, and they’re hoping that you will be so set on making a purchase that you’ll agree to it anyway. Or, it may be an inferior vehicle compared to the one you originally considered. You may still get a vehicle at a similar price point, but it is vastly different from what was advertised. For instance, you may have planned to buy pickup trucks for your employees, but the only vehicles the dealership offers in that price range are small sedans.

The problem here is that the business has not been transparent about what they’re offering. They lure customers in with false promises of lower prices or high-quality products, only to attempt a switch at the last second. This and other types of fraud can lead to litigation between companies, so it’s important to understand what legal steps to take.