Bait and switch scams are a common method of taking advantage of customers and wasting their time and money. Even though it’s against the law, sellers still do it, especially online. Cybercriminals also use these methods to get malware or other harmful strikes on users who don’t know it. So, be careful when you shop and scroll online to avoid getting ripped off. Read on to find out what bait-and-switch scams are and how they work.
Overview
Bait and switch is an unethical way to sell something by misleading customers about the quality or low price of an item that isn’t available to sell them a similar item that costs more. People think of it as store sales fraud, but it can also happen in other situations. In many countries, it is illegal to use “bait and switch” methods, but not all cases are fraud.
Bait-and-switch scams happen in every field, but the internet has made them easier to do and more common. That is to say, it’s easy to trick people into buying something by using fake photos or videos that don’t show the real thing. Some sellers may even steal pictures from real vendors. Also, making websites and online stores is very simple, which makes it easy for people to pull this kind of scam.
In addition, people tend to believe what they see on the websites they like. Have you given it some thought before clicking on an interesting Instagram ad? Many hackers get through the quality checks before they are reported, even though big platforms have rules and guidelines in place to stop this kind of scam on their websites.
What Is Bait and Switch Scam?
A bait-and-switch scam is a type of fraud in which a business offers a product at a meager price to replace it with a worse or more expensive product when the customer buys it. Businesses use lower prices to get people to buy their products, just like the worm at the end of a fishing stick. But they don’t get the item that was offered and “baited” them to come in. Instead, the company tries to make a switch and sell the customer a completely different item. Most of the time, the thing the store is trying to sell is either not as good or costs more than what was advertised. Regardless of the way it happens, it is theft that can be punished in court.
How do bait-and-switch scams work?
Say you see a wool jacket ad. You click on it even though the very low price seems too good to be true. You are taken to a store’s website that looks like it’s real, but the jacket is already sold out.
But they also have a wool jacket that looks a lot like the one you saw. You are oblivious to the significantly higher price because you are already a fan of the design. You might even feel lucky that you found a jacket that looks like it!
The ad is the “bait,” and the more expensive clothing is the “switch.” Someone lied to you and made you spend more money than you planned. You might feel tricked when you find out what happened later, but in reality, it is a legal way to get people to buy expensive things.
Unfortunately, stores also use this method to sell broken or poorly made things. You may have seen what happens when people buy cheap prom dresses online and then return them. The picture on the store’s website doesn’t always match the real thing. The cheap copy, which doesn’t always look like the dress in the picture, is the switch. The beautiful picture, which is usually taken from designers’ websites and fashion shows, is the bait.
How do bait-and-switch scams work?: Warning Signs of Bait and Switch Tactics
How can you tell when you see bait-and-switch scams? Watch out for these warning signs:
#1. If a business gives you a product or service for a very low price with no strings attached,
Many times, companies don’t just give things away for very little money. Sometimes they have a plan to make up for the loss, or they have to sell things for less than they’re worth. Perhaps they will give you a gift if you join their mailing list or buy something worth $100. Also, since they’re closing down, they might have a big sale. Be careful if you can’t figure out why the price is off.
#2. If the seller asks too early about how to pay,
When you buy something online, the seller might ask for your payment information before giving you all the details about the item or deal. This is not a good sign.
#3. If a seller starts making up reasons for why a product they offered is sold out or costs more than they said it would,
It’s possible that the person selling might not be telling you the truth when they act in these ways.
#4. If a seller says that a product they are advertising is only a part of a bigger service or product.
People who sell in this way will also make you buy the whole package to get the deal they’re offering. But you know that you’ve probably found a hook and a switch.
#5. If the seller is making it hard for you to get information,
A trustworthy seller shouldn’t have any trouble answering your questions and giving you the details you need about a product or deal. It could be a sign that the seller isn’t real if they avoid or ignore questions or don’t seem to be giving full, honest answers.
What Is Bait and Switch Scams?: What It’s Not
People who buy something should be careful of sellers who use “bait and switch” tricks. On the other hand, they should also be able to spot situations that aren’t bait-and-switch. If a customer falsely claims that a business or vendor is using this method, they could face serious legal implications. Some of the following cases might seem like bait-and-switch scams, but they’re not:
#1. Error in Pricing
One of the most frequent issues that customers mistake for bait and switch is pricing mistakes. A pricing error is when a seller makes a mistake and offers the wrong price for a product. It’s a good thing that the case is simple to understand. Imagine that a brand-new 60-inch LCD TV is marked down to $50 when it shouldn’t be. No store would ever sell that TV for that price.
The customer might be able to get the goods at a crazy price in this case. If the seller realizes he made a mistake, he will probably send an email to fix the problem and cancel the sale. He could also give the customer a refund if they have already paid for the thing.
#2. Few Units Available
People also complain about “bait-and-switch” when the strategy doesn’t work when there are limited supplies of a product. There are times when a store owner might discount an item but only let the first 10 people know about the deal because he only has 10 of that item in stock. Because the seller was clear about the offer at first, the event cannot be called a bait-and-switch scheme.
How To Avoid Bait-And-Switch Scams
You might be interested in learning how to avoid being the victim of a bait and switch. The good news is that there are ways. People who want to do this must be smart shoppers and know that in the U.S., bait-and-switch advertising is against the law in stores.
#1. Shop in places that you can trust.
Don’t shop on websites that you don’t trust. Look up the website to see if other shoppers have had good experiences with it if you’re not sure. You can also see if the Better Company Bureau has approved the company. When shopping on person-to-person sites like Etsy or eBay, read the reviews of the seller before you buy to make sure that other customers have a good experience.
#2. Ask for further details
Find out more about something before you buy it. Make sure you know what you’re getting by getting all the information you need. If the seller doesn’t answer your questions, they might not be who they say they are. If you ask them to explain the deal in detail, they will find it harder to change their minds later and still say the deal is real. Ask about details about the deal and the buy, such as
- Exceptions and Rules
Some raises have a lot of rules and exceptions that are hard to understand. To get the listed price, ask if you need to agree to any extra terms or if there is any small print that could stop you from getting the advertised rate.
- Total Price
Sellers will sometimes add extra fees to the price they list. You should ask if there are any extra costs and get a price quote.
- Length of Promotion:
If the deal is for a service, find out how long it lasts and how much it will cost after the deal ends. There are times when service providers will offer a cheap rate to get you to sign up, but that rate will end soon.
- Early Cancellation Fees:
If you pay for a service, find out if there are any fees for canceling early. Even if you don’t sign anything, some businesses might charge this fee.
#3. Before you click on a link, make sure it is safe.
Look at the URL, which is short for “website address,” of a link before you click on it to make sure it’s safe. If the URL doesn’t make sense or doesn’t seem to fit what the link says it has, don’t click it until you’ve looked into it more.
#4. Use security software
A password manager will keep your internet accounts safe, and antimalware and antivirus will keep your device safe. A lot of people wait until something happens to install protection software. Be not that person. Keep your devices and accounts safe now, and you’ll never have to deal with the effects of a hack. To stay safe from harmful ads, pop-ups, and malware, use ad-blocking software, anti-malware software, and browser add-ons like NordVPN’s Threat Protection.
#5. Report scammers who use bait and switch
You should report people who use bait-and-switch scams so that you and other people don’t fall for them. Report sellers who employ bait-and-switch tactics to the websites where they advertise, as this is typically against website policy. The sites can then block the sellers. You can also tell the FTC about sellers who use “bait and switch” tricks. You can do this by going online and making a report to the FTC.
What is a bait-and-switch argument?
During a bait-and-switch scam, a salesperson might argue vehemently that the advertised item is not as good as the merchandise they are trying to upsell.
What Is Bait and Switch in Politics?
There are different meanings of “bait and switch” in politics. People might say that politicians are baiting and switching if they run for office on one platform and then follow through with a different mission. Additionally, it could be referring to so-called “caption bills,” which are short pieces of legislation with general names but language that significantly alters the law. “Trick” is the legislative content, while “bait” is the title and the generic nature of the package.
What Is the Penalty for Bait and Switch Advertising?
The penalty will depend on the severity of the case and under which laws it has been prosecuted. If it is a violation of false advertising, the bait and switcher may be fined up to $10,000 and/or up to one year in prison per offense, plus legal fees and damages.
Is the bait-and-switch scam illegal?
Bait-and-switch advertising is illegal and is classified as fraud. However, there are some borderline cases.