Question

Which of the following are often pieces of evidence against a bait-and-switch scam?

A. Marissa enlists in the military after a recruiter overhyped benefits provided by the Montgomery G.I. Bill of Rights. While in the military for six months, Marissa learns of this embellishment and requests for the recruiter to be dishonorably discharged.
B. Mike decides to complain to the Better Business Bureau after a store advertises “everything in this store is $5 or less” but discovers the store charges a $2 fee for credit card purchases under $66.
C. Fine print of a new construction home states after 2 years, all residents must pay a $10,000 fee
D. Bill purchases a television from a wholesale store on Small Business Saturday (Saturday after Thanksgiving) that is priced 50% higher than advertised for the 1-day only Black Friday Sale (day after Thanksgiving) and decides to sue.

Answer 1

Among the options provided, B and D are examples that could constitute evidence against a bait-and-switch scam, with option D being a clear example. The bait-and-switch involves advertising a product at a certain price or terms and then not honoring it, pushing a different product or service instead.

Step-by-step explanation:

Evidence against a bait-and-switch scam involves demonstrating false advertising claims where a business lures customers with misleading offers and does not intend to sell the advertised product or service at the stated terms. This can involve advertising an attractive product or deal that is not actually available as advertised and then pushing a more expensive or less desirable product on the consumer.

In the context of the scenarios provided:

• Option A doesn't fit the criteria for bait-and-switch as it discusses the misrepresentation of military benefits rather than a commercial transaction.
• Option B could suggest a bait-and-switch if the store is using the '$5 or less' advertisement to draw in customers without clearly specifying the additional credit card charge which affects the final price.
• Option C, while potentially misleading, does not represent a typical bait-and-switch situation, as it involves terms stated within a contract for property and not an initial advertising lure for a good or service.
• Option D is a clear example of bait-and-switch because it involves a misleading advertisement for a one-day sale where the product price was actually higher, leading customers to the store under false pretenses.

According to the Federal Trade Commission (FTC), bait-and-switch tactics are illegal as they are forms of deceptive advertising. Consumers should always be attentive to advertisements, keeping in mind the principle of 'Caveat emptor'—let the buyer beware.