[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: 16CFR238.4]

[Page 160]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 238_GUIDES AGAINST BAIT ADVERTISING--Table of Contents
 
Sec. 238.4  Switch after sale.

    No practice should be pursued by an advertiser, in the event of sale 
of the advertised product, of ``unselling'' with the intent and purpose 
of selling other merchandise in its stead. Among acts or practices which 
will be considered in determining if the initial sale was in good faith, 
and not a strategem to sell other merchandise, are:
    (a) Accepting a deposit for the advertised product, then switching 
the purchaser to a higher-priced product,
    (b) Failure to make delivery of the advertised product within a 
reasonable time or to make a refund,
    (c) Disparagement by acts or words of the advertised product, or the 
disparagement of the guarantee, credit terms, availability of service, 
repairs, or in any other respect, in connection with it,
    (d) The delivery of the advertised product which is defective, 
unusable or impractical for the purpose represented or implied in the 
advertisement. [Guide 4]

    Note: Sales of advertised merchandise. Sales of the advertised 
merchandise do not preclude the existence of a bait and switch scheme. 
It has been determined that, on occasions, this is a mere incidental 
byproduct of the fundamental plan and is intended to provide an aura of 
legitimacy to the overall operation.