Fraud and Scam Awareness: False advertising Cheats
Most retailers and businesses are honest and completely legitimate. Aggressive advertising does not imply dishonesty, but there are many fraudulent practices which are commonly used by unscrupulous business operators.
Bait and switch
Bait and switch advertising is when a retailer offers something for sale at bargain prices with no intention of selling the advertised products or deals. The bait and switch scheme lures consumers into businesses with attractive offers, only to force the consumer to make more expensive purchases. To accomplish this, bait and switch sellers downplay the quality of the advertised "specials." The salesperson may belittle the guarantee, claim a lack of availability, or say that the best credit terms don’t relate to the advertised product or service. In some cases the advertised specials won't even be available for sale, or salespersons may refuse to show the special to interested buyers. Some bait and switch sellers have been known to go as far as to penalize those salespersons who do sell the advertised special to consumers. Remember: honest stores do sell out of advertised specials, but don’t forget to ask for a rain check.
Buy one get one free
In some cases, when this offer is made in an advertisement, the price of the product you pay for is inflated to cover the cost of the "free" product. In other cases, the "free" product is of low—or non-sellable—quality. Nothing is ever truly "free." Let’s be honest, the point of legitimate, for-profit businesses is to make money.
False price comparison
Legitimate advertisers often compare a sale price to a regular price. Unscrupulous advertisers may inflate the "regular" price in order to make customers think they are getting a bargain. There are even cases where stores raise regular prices and advertise those prices as "on sale."
Liquidation sales
Some retail businesses falsely advertise themselves as going out of business. This deception leads consumers to believe they can shop with considerable savings. These false sales may have the following claims: "bankruptcy," "lost our lease," "final days," "liquidation," "fire sale," or "quitting business." Usually, businesses, which advertise themselves as "going out of business," must obtain a permit from the sheriff or the city in which the business is located. Such permits must be displayed near the entrance. Advertisements, which announce such sales, must display the permit number. You can also ask to see a notice of lease cancellation or a declaration of bankruptcy.
Misrepresentations
Unscrupulous advertisers will misrepresent the value and qualities of products offered for sale. "One owner" used cars may have had several owners. "Late model" TV s can turn out to be 10 years old. "Russian army watches" turn out to be ordinary, low quality watches. "Maine lobsters" may really come from Depot Bay, Oregon. Diet pills and miracle cures can be completely worthless. Be careful when you see exaggerated claims for the latest snake oil—especially if you don’t know the seller or business.
Cautions to protect against false advertising
- Shop around for your own price comparisons
- Check all advertising claims before buying
- Ask for a "rain check" when advertised products are not available
- Ask to see a permit for going-out-of business sales
- Be on guard when you see anything for free
- Don't let yourself be moved from a low-priced "bait" to an expensive "switch"
- Report false advertising to the Department
of Consumer Affairs