Bait-and-switch advertising:

Bait-and-switch advertising:


a. is illegal for all products retailing over $10. However, under the FTC Act, bait-and-switch is legal if puffery was also included in the advertisements and the product price is under $10.

b. does not apply to services.

c. is a form of deceitful diversion of patronage.

d. is permissible if interstate commerce is not involved.

e. occurs when a product is advertised at an unrealistically low price to serve as "bait" and then the salesperson tries to "switch" the customer to a higher-priced product.


Answer: E


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