When Can You Sue Over Bait-and-Switch Advertising?

Key Takeaways

Bait-and-switch advertising is a tactic some companies use to attempt to get customers to buy an upgrade of the original product they advertised for sale. Many times, companies do this by advertising a certain product at a low price, but when a customer tries to purchase it, the company claims that a more expensive product is significantly better.

This type of conduct may constitute illegal false or deceptive advertising under federal law and California consumer protection statutes. At Cutter Law, we help individuals affected by a company’s deceptive advertising tactics pursue claims for financial or personal harm.

What Is Bait-and-Switch Advertising?

The Federal Trade Commission (FTC) defines bait-and-switch as advertising a product without the genuine intention to sell it solely for the purpose of establishing contact with a prospective customer to induce them to buy another product. This is done through a variety of practices designed to discourage the sale of the advertised product at the advertised price. Under federal and state law in California, legitimate promotions are allowed, but deliberate deception is not.

Under FTC guidelines, the following acts are considered unfair or deceptive trade practices and are therefore prohibited:

  • Disparaging an advertised product for the purpose of “switching” a customer to buy another product.
  • Advertising a product whose actual appearance or performance discourages its purchase by being below the quality implied or represented in the advertising.
  • “Switching” a customer to a higher-priced product by refusing to show or sell the advertised product, including by claiming that the advertised product is unavailable to purchase or be delivered.

Under What Circumstances Can You File a Bait-and-Switch Advertising Lawsuit?

To establish grounds for a bait-and-switch advertising lawsuit, several signs may indicate that a bait-and-switch scheme occurred. Some of the telltale signs of a bait-and-switch scheme that may give you grounds to sue include:

  • Intentionally advertising a product that isn’t available
  • Refusing to honor advertised prices.
  • Misrepresenting important facts.
  • High-pressure tactics after the bait.
  • A low number of sales of the advertised product at the advertised price.
  • If salespeople received lower commissions for the advertised product than for other products.
  • Large advertising expenses for a product with minimal sales.

What You Must Prove in a Bait-and-Switch Lawsuit

In a bait-and-switch case, what you have to prove depends on the specific law you bring your claim under (such as the UCL, FAL, or CLRA). In general, a plaintiff must show that the business made a false or misleading advertising statement or omission, that the deception was likely to mislead reasonable consumers and was important to the purchasing decision, and that the misconduct caused the plaintiff an economic loss or other legally recognized harm.

Laws You Can Use To Sue for Bait-and-Switch Advertising

California has several consumer protection laws that safeguard customers from bait-and-switch advertising tactics, and the federal government also protects consumers from unfair trade practices. Some of the most relevant laws in bait-and-switch cases include the following:

California Consumer Legal Remedies Act (CLRA)

The California Consumer Legal Remedies Act declares several methods of unfair or deceptive business practices. The act prohibits unfair and deceptive acts undertaken by any person in a transaction intended to result in the sale of goods or services to any consumer. Forbidden practices include advertising goods without having the expected demand in stock, among other things.

California False Advertising Law (FAL)

California’s False Advertising Law bans false or misleading statements in advertising for goods and services. The law aims to protect consumers from deception and allows enforcement by public officials or private lawsuits for restitution.

California Unfair Competition Law (UCL)

California’s Unfair Competition Law bans any “unlawful, unfair, or fraudulent” business act, including false advertising, to protect consumers from deceptive trade practices. It allows lawsuits from individuals or businesses that suffered financial losses due to illegal advertising practices, such as bait-and-switch ads.

Federal Trade Commission Act

While individuals cannot bring private lawsuits directly under the FTC Act, the FTC’s definitions and enforcement actions often inform how courts evaluate deceptive advertising claims under California law.

What Damages Are Available in a Bait-and-Switch Claim?

Under the CLRA, consumers may seek actual damages, restitution, injunctive relief, court costs, and attorneys’ fees. In some cases, additional remedies may be available if separate fraud or tort claims are established.

What To Do If You Think You Were a Victim of Bait-and-Switch Advertising

If you believe you may have been a victim of bait-and-switch advertising and suffered harm as a result, the first step is to document the advertisement and the purchase. Gather evidence, such as screenshots, receipts, emails, promotional materials, and any relevant conversations with the seller, if possible. To establish deception, you can also gather copies of the misleading statements, advertisements, or marketing materials, like social media posts, endorsements, or influencer collaborations.

For a successful bait-and-switch claim, you must show that the deception caused material harm. Evidence of this could include proof of purchase, financial loss, or competitive harm.

How Cutter Law Helps Victims of Deceptive Advertising

Even though California’s consumer protection laws are strong, the legal process of pursuing a bait-and-switch lawsuit can be complex. Working with an experienced attorney ensures your rights will be protected and gives you the best chance of receiving full compensation for your losses.

When you work with a consumer protection lawyer, they will evaluate the viability of your claim, gather supporting evidence, and determine whether a federal or state lawsuit is appropriate. After filing a claim, your lawyer can negotiate a settlement or take your case to trial. At Cutter Law, our attorneys have the experience needed to investigate misleading advertising patterns, deal with large corporations, and hold companies accountable for deceptive practices.

Ready To Take Action? Cutter Law Can Help You Pursue a Bait-and-Switch Lawsuit

If you or a loved one has been a victim of bait-and-switch advertising, you deserve justice and compensation for the harm you’ve endured. At Cutter Law, we strive to advocate for consumers who have been deceived by large businesses in California. With offices in Sacramento, Oakland, and Santa Rosa, we provide a family-like experience to every client, fostering close attorney-client relationships built on strong communication and trust. Contact us today for a free consultation by calling 888-285-3333 or filling out our online contact form.

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