Eager to get new business, some entrepreneurs make offers that most prospects won’t qualify for…and in order to get the results contained in the advertising, the prospect will need to pay more than the stated price in the offer.
This type of “bait and switch” can be effective in getting new customers but it’s also illegal under federal and state laws.
For example, the FTC recently required $1.1 million in refunds by a business that made such an offer. And that’s just one government agency.
Remember there’s also state deceptive trade practices laws. In addition to damages, customers cheated by a bait and switch can receive statutory damages (often 3x the actual damage), attorneys’ fees, and court costs. In other words, you could end up paying 3x whatever you benefited from a bait and switch offer, pay your customers’ legal fees, and your own legal fees defending.
To help prevent this type of disaster and other legal dangers, consider getting a sales copy legal compliance review by Business Marketing Lawyer Mike Young.