A bait-and-switch is a type of fraud that often targets consumers, or even other business owners. It is a trick used to make sales, and the purchaser may then realize that they have been deceived after the fact.
Often, a bait-and-switch starts with the advertisement of an attractive deal, such as a significant price cut on a certain popular item. Consumers are told that the item is in stock, and the advertising material makes it clear that they will get a good deal if they make a quick purchase, influencing them to buy.
But when they arrive, the deal is not as advertised. Maybe the product is actually much worse than was advertised or does not do what it claimed. Maybe the product is not even in stock and never was. The business just wanted to get people in the door, and then they will try to upsell them to a more expensive product once they arrive.
How could this affect your business?
As a business owner yourself, you could still be victimized by bait-and-switch.
For example, maybe you are looking for a parts and material supplier for your manufacturing company. You find a deal on materials that cost half as much as the ones you are currently buying—but are advertised to be just as good. When they arrive, you get a clearly inferior product, or the parts and material supplier tells you that those specific items are out of stock and tries to upsell you to another item that is even more expensive than what you were already purchasing.
This type of fraud can have a serious impact on your business’s financial position and may be a violation of your rights, so be sure you know what legal steps to take.
