Bait and Switch Practices

Abstract

The term 'bait-and-switch' is most commonly used to refer to an advertising practice that is both unethical and illegal. While the term has been used since the 1920s, the practice is likely to be much older. It typically involves an advertiser luring customers into the store by offering a product at an unrealistically low price (the bait). The customer is then told that the advertised goods are (1) not available or (2) of inferior quality and/or not suitable for the customer's needs. The goal is to "switch" the customer to another, more expensive product or one that has a higher profit margin. What sets bait-and-switch apart from other advertising practices is that the store does not intend to sell the advertised product—the advertised product is intended to attract customers, who are then persuaded to buy another product. It is not only retailers who use bait-and-switch techniques. This technique could be used by any provider of goods or services, such as companies providing financial services and products, recruitment agencies, and travel agencies. Even governments have been accused of using bait-and-switch strategies.