Bait and Switch

If a seller runs an advertisement for a product that he does not possess, or the product is not available in reasonable quantities, and then the seller convinces a consumer who has responded to the advertisement to buy a more expensive product, the seller has committed a "bait and switch." Bait and switch schemes are illegal.

For example, you see a print ad that says "Sony DVD players, $ 50." You go to the store that placed the ad. A salesman tells you that the store ran out of the advertised DVD player. The salesman then convinces you to buy a different kind of DVD player for $ 100. If the store never had the advertised DVD player in stock or had only a few of them, the store has committed an illegal bait and switch.

Irregulars and Seconds

A seller may not advertise a product as first-quality and then deliver "irregulars" or "seconds." The terms "irregulars" and "seconds" refer to products that have quality defects.

For example, you see an ad in a seller's catalogue that says "High Quality T-shirts for $ 1." You order five shirts. When you receive the shirts in the mail, you discover that they contain blemishes and uneven coloration that were clearly caused during the manufacturing process. The seller has violated the law by failing to disclose in the ad that the shirts are irregulars or seconds.

Palming Off

"Palming off" occurs when a seller advertises a product as if it is made by a particular manufacturer and then sells a product made by a different manufacturer. Palming off is illegal.

For example, you see a print ad that says "Jerry Garcia ties, $ 10." You buy one of the ties from the store that placed the ad. You discover that the tie was actually made by Pat Boone. The store has violated the law by palming off Pat Boone ties as if they were Jerry Garcia ties.

Free Offers

When an advertiser claims that a product is "free," the law requires the product to be truly free of charge.

For example, a pharmacy places a newspaper ad that says "Free dental floss with every toothbrush purchase." If the pharmacy increases the price of its toothbrushes in order to cover the cost of the dental floss, then the dental floss is not actually free.

Deceptive Pricing

The law prohibits advertisements that contain deceptive pricing, such as misleading or incorrect price comparisons. A price comparison may refer to a competitor's price or the advertiser's former, future, or usual price.

For example, a store places a newspaper ad that says "Leather Jackets 50 % Off." Presumably, the ad means that leather jackets are being offered for sale at a price that is 50 percent less than the store's former or usual price for the jackets. If the store did not previously and regularly sell the jackets for 50 percent more than the advertised price, then the ad contains deceptive pricing.

Puffing

Exaggerations by an advertiser are called "puffing." Puffing is not illegal. The law requires consumers to understand that sellers sometimes exaggerate.

For example, a Texas barbecue restaurant continually runs radio ads that say "We have the best barbecue sauce in Texas." Even if the restaurant's sauce is not the best in Texas, the ads are not illegal because the "best in Texas" claim is mere puffing.

Copyright 2009 LexisNexis, a division of Reed Elsevier Inc.