It’s a well-known and highly-regarded theory about commerce: you get what you pay for. Regardless of whether you own a business or are buying something for yourself, you can choose to pay less for a product or service, knowing full well the quality might not be as high as it would be from an established, more expensive vendor. But what if you paid the extra money, yet still received an inferior outcome?
It’s possible that you are the victim of a bait-and-switch scheme, a deceptive trade practice in which a seller or provider of services intentionally engages in false advertising to trick their victims. Scams using bail-and-switch tactics come in countless varieties, ranging from deceitful advertised prices and advertised products to misrepresentation of available quantities and hidden fees. In the business world, bait-and-switch tactics can mean a contractor isn’t using the skilled and experienced personnel it promised for a project.
Whether it’s sketchy business practices or retailers tricking patrons through misleading advertising, bait-and-switch ploys often run afoul of consumer protection laws. The Federal Trade Commission (FTC) has laws in place to combat consumer fraud, and many states have comparable laws administered by a Division of Consumer Affairs (or a similar agency). The best way to avoid falling victim to one of these grifts is to become adept at spotting bait-and-switch advertising and avoiding getting entangled. Another popular commerce theory is that if something sounds too good to be true, it probably is.
With that in mind, let’s take a closer look at how bait and switch works.
Well, There’s the Destination Fee, the Delivery Fee, the Preparation Fee, the Fee Fee …
Bait-and-switch scams can target businesses or private consumers. In simple terms, it consists of someone promising a product or service they have no intention of providing. Bait and switch can also involve hidden costs and fees withheld until late in negotiations or purposely lowballing a contract while planning to demand additional funds after the project has begun.
Depending on the details of the offense, bait-and-switch scams can be false advertising under the Lanham Act, unfair or deceptive acts under Section 5(a)(1) of the Federal Trade Commission Act (FTCA), or unjust enrichment. In a business agreement, it can also constitute a breach of contract. In addition to federal law, state laws can increase protections and offer legal remedies to help victims be made whole.
Both new and used motor vehicle dealerships have a history of questionable (or outright illegal) sales practices, including deceptive advertising and bait-and-switch tactics. Potential car buyers might get excited when they hear about a low price at a car dealership, only to be told when they get there that the vehicle being advertised was “already sold” and urged to consider other, higher-priced autos. The attempted addition of dubious fees for rust-proofing, fabric protection, and “customer service fees” is sometimes considered a bait-and-switch practice as well.
Bait-and-switch sales tactics have also been encountered in stores selling electronic gear like TVs and laptops. When it’s a scam, the deal that brings you to the store and through the door will no longer be available. Instead, consumers are directed to either more expensive products or inferior-quality items. Caveat emptor, indeed.
The A-Team? More Like the S-Team, Maybe.
In certain instances, a bait and switch can rise to the level of a breach of contract. Some agreements between two companies are based on the expectation that certain staff members will be working on the project. If the firm hired to provide a service knows in advance that the desired employees aren’t going to be available and plans to use less-effective staffers instead, they may well be considered in breach of contract for a bait-and-switch offense.
Other violations can lead to business-based violations of the FTCA. A real estate contractor who agreed to install expensive hardwood flooring but instead used a cheaper substitute could find themselves liable for the bait and switch. A firm that agrees on a contract price but has already planned out additional expenses it intends to charge once the job is well underway might also be held accountable.
That’s a Bait-and-Switch Scam! Or Is It?
It’s not always easy to bring legal action against a person or a company for bait-and-switch tactics. The details can make the difference between a prosecutable offense and just a clever sales ploy. The phrase “limited quantities available” can absolve a business from bait-and-switch accusations. Companies can also be found blameless for honest mistakes, such as a typo on a price in a print ad.
If you see or hear an ad for a car that sounds like the deal of the century, make sure to read the fine print or try to listen carefully to the sped-up disclaimer at the end. Oftentimes, a partial VIN number will be mentioned, indicating that the particular vehicle is the great deal, and not all others of the same model.
There Ain’t No Such Thing as a Free Lunch
Whether it’s to a scammer on eBay or on a package from the cable company, even the most cynical among us can fall victim to a bait-and-switch scam. If you feel like you got conned, you have legal recourse. Filing a fraud claim with the FTC will alert the agency to the problem, but they don’t address cases individually. The Consumer Financial Protection Bureau (CFPB) has recovered billions stolen through fraud since its inception, but it has been greatly reduced in both staff and effectiveness under the Trump administration.
Aid can often be found at the local level, with most states having a Consumer Affairs Division dedicated to fighting fraud such as bait-and-switch. On April 13, 2026, New York Attorney General Letitia James, backed by 25 other state attorneys general, called on the FTC to create rules to address bait-and-switch tactics used in the rental market, including “mandatory” fees not revealed until after a lease is signed. The website for your state’s attorney general is a good place to start when looking for help, as is consulting with a consumer protection attorney.
Related Resources
- Fair Advertising FAQ: A Guide for Small Businesses (FindLaw’s Small Business)
- Groupon Sued for “Bait and Switch” Advertising (FindLaw’s Law and Daily Life)
- 10 Tips for Buying a New Car (FindLaw’s Consumer Protection Law)
