[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR238.3]

[Page 160]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 238_GUIDES AGAINST BAIT ADVERTISING--Table of Contents
 
Sec. 238.3  Discouragement of purchase of advertised merchandise.

    No act or practice should be engaged in by an advertiser to 
discourage the purchase of the advertised merchandise as part of a bait 
scheme to sell other merchandise. Among acts or practices which will be 
considered in determining if an advertisement is a bona fide offer are:
    (a) The refusal to show, demonstrate, or sell the product offered in 
accordance with the terms of the offer,
    (b) The disparagement by acts or words of the advertised product or 
the disparagement of the guarantee, credit terms, availability of 
service, repairs or parts, or in any other respect, in connection with 
it,
    (c) The failure to have available at all outlets listed in the 
advertisement a sufficient quantity of the advertised product to meet 
reasonably anticipated demands, unless the advertisement clearly and 
adequately discloses that supply is limited and/or the merchandise is 
available only at designated outlets,
    (d) The refusal to take orders for the advertised merchandise to be 
delivered within a reasonable period of time,
    (e) The showing or demonstrating of a product which is defective, 
unusable or impractical for the purpose represented or implied in the 
advertisement,
    (f) Use of a sales plan or method of compensation for salesmen or 
penalizing salesmen, designed to prevent or discourage them from selling 
the advertised product. [Guide 3]