Tag: Bait and Switch

What is Bait and Switch

What is Bait and Switch 

Bait-and-switch is a form of fraud used in sales.   Customers are “baited” by merchants’ advertising products or services at a low price, but when customers visit the store, they discover that the advertised goods are not available, or the customers are pressured by sales people to consider similar, but higher priced items.

Are there any regulations dealing with bait and switch 

New Jersey has a group of regulations dealing with bait and switch.
www.njconsumeraffairs.gov/Statutes/Consumer-Fraud-Act.pdf 
Other laws are similar,

(a) Prohibited. — A person may not advertise for sale merchandise, commodities, or service through an advertisement describing the merchandise, commodities, or service:

(1) As part of a plan or scheme with the intent not to sell the merchandise, commodity, or service at the advertised price; or

(2) With the intent not to sell the merchandise, commodity, or service.
Typical Cases 

Laster v. T-Mobile USA, Inc.

407 F. Supp. 2d 1181 (S.D. Cal. 2005)     Holding that “bait-and-switch” advertising tactic suffices to establish injury  consumers were lured in with advertisements for free or deeply discounted services

 

Have you been deceived by a bait and switch practice.

Man in home office on telephone using computer smiling

 

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New Jersey and Switch Claims

GM brake problem

Bait and Switch occurs when a vehicle is advertised but when the prospective customer comes to the dealership, the vehicle is not available.  That frequent conduct constitutes bait and switch and thereby violates the New Jersey Consumer Fraud Act.  The regulation states,

13:45A-26A.4  Bait and switch

  • The following motor vehicle advertising practices constitute “bait and switch” and are prohibited and unlawful:
    1. The advertisement of a motor vehicle as part of a plan or scheme not to sell or lease it or not to sell or lease it at the advertised
    2. Without limiting other means of proof, the following shall be prima facie evidence of a plan or scheme not to sell or lease a motor vehicle as advertised or not to sell or lease it at the advertised price:
      1. Refusal to show, display, sell, or lease the advertised motor vehicle in accordance with the terms of the advertisement, unless the vehicle has been actually sold or leased during the period of publication; in that case, the advertiser shall retain records of that sale or lease for 180 days following the date of the transaction, and shall make them available for inspection by the Division of Consumer
      2. Accepting a deposit for an advertised motor vehicle, then switching the purchaser to a higher-priced motor vehicle, except when the purchaser has initiated the switch as evidenced by a writing to that effect signed by the
      3. The failure to make delivery of an advertised motor vehicle, then switching the purchaser to a higher-priced motor vehicle; except when the purchaser has initiated the switch as evidenced by a writing to that effect signed by the purchaser.
        You  told me the car was available and the price was 9,000.

        FREE CONSULTATION ON YOUR BAIT AND SWITCH CLAIM
        CALL 973-598-1980 or email howardgutman@aol.com

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