Bait-and-switch

Bait-and-switch is the action of advertising goods that are an apparent bargain, with the intention of substituting inferior or more expensive goods. The measures against this practice depend greatly upon the consumer laws in each country, but it is usually considered under unfair and deceptive transactions.

Legality

In the United States, the Federal Trade Commission (FTC) has issued a Notice that it has determined that bait and switch sales practices are unfair or deceptive trade practices, and violate the FTC Act. And in December 2024, the Commission announced a "Bipartisan Rule Banning Junk Ticket and Hotel Fees", in an effort to end the hidden fees when buying tickets or accomodation:

"The Junk Fees Rule will ensure that pricing information is presented in a timely, transparent, and truthful way to consumers of live-event tickets and short-term lodging, two industries whose pricing practices the Commission has studied in particular. Consumers searching for hotels or vacation rentals or seats at a show or sporting event will no longer be surprised by a pile of “resort,” “convenience,” or “service” fees inflating the advertised price. By requiring up-front disclosure of total price including fees, the rule will make comparison shopping easier, resulting in savings for consumers and leveling the competitive playing field." FTC, Press Release. December 17, 2024

The aim of this rule is to force companies and sellers of these goods to be more transparent.

Recent cases

• FTC Sends More Than $1.1 Million in Refunds to Consumers Deceived by Bait-and-Switch Ads for LASIK Vision Correction Procedures.

See also

• Post-purchase EULA modification
• Retroactively amended purchase
• Retroactive policy enforcement