Bait and Switch Selling: The regulatory framework in Canada and the United Kingdom and data collection in the retail sector

Author

Jean-François Vinet

Organization

Option consommateurs

Published

2012

Summary

Consumers are generally attracted by low prices. Merchants know this and, to generate in-store traffic, often advertise very attractive discounts on certain items (loss leaders). This practice is completely legal and testifies to the effectiveness of the market economy.

However, there are other merchants who, while appearing to be using the same tactic, have no intention of selling the products advertised at the bargain price. Once in the store, consumers are directed to other products whose sale is more profitable for the merchant. This deceptive commercial practice, known as bait and switch, is illegal in Canada and in the UK.

There are two chapters in this research report. In the first, OC examines the regulatory framework in Canada and the United Kingdom with regard to bait and switch. The aim here is to see if the current framework in Canada can be improved in light of the various laws, jurisprudence and industry standards of practice.

The second chapter presents the results of a data collection, the aims of which were as follows: to determine whether merchants actually do have certain items that they advertise in their flyers; to examine the steps merchants take when an advertised product is temporarily out of stock.

The purpose of this research was to determine whether consumers are adequately protected with regard to bait and switch and to take a closer look at merchants’ practices in this regard.

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OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.

Contact information

Source: Consumer Policy Research Database