Bait and switch advertising - Holiday season

WARNING

November 27, 2003 — The Competition Bureau issued a warning to consumers and competitors today to be on the look out for "bait and switch" advertising.

As we approach the holiday season, consumers who are shopping to purchase gifts for friends and family are particularly vulnerable to the pressure to switch to alternative products when the one they expected to buy is not available.

Over the past several months, the Bureau has noticed a significant increase in the number of complaints it receives about bait and switch advertising. The complaints received are against a number of advertisers and retailers, and involve a wide variety of products including computers, home electronics, hardware and small appliances, and also involve services, especially those sold in conjunction with consumer products.

How bait and switch advertising affects you as a CONSUMER

You are attracted to a store by an advertisement for a bargain-priced product. Once at the store, you discover that the product is sold out or otherwise not available. You may then be "switched" to a higher priced item by a salesperson, or while you are in the store, you may find yourself induced to make other purchases. In either case, the retailer captures your shopping dollars by luring you to the store with an advertised bargain that was never intended to be made available in reasonable quantities. You have become the latest victim of bait and switch advertising.

How bait and switch advertising affects you as a COMPETITOR

Bait and switch advertising is anti-competitive. By advertising products at bargain prices that are not available in reasonable quantities, retailers can unfairly lure consumers to their stores, thereby taking business away from you. Your loyal customer base begins to slip away, and new customers may not consider entering your store. You are also a victim of bait and switch advertising.

What the law says

Under the Competition Act, companies are prohibited from advertising products at bargain prices that they do not have available in reasonable quantities.Retailers who contravene the law may be ordered by the Competition Tribunal to stop the conduct, publish a corrective notice, and/or pay a significant administrative monetary penalty.

Have you noticed bait and switch advertising? Report it!

Consumers or competitors who notice bait and switch advertising are encouraged to report it to the Competition Bureau by calling 1-800-348-5358 or by visiting the Bureau's Web site at: www.competitionbureau.gc.ca.

The Competition Bureau is an independent law enforcement agency that ensures all Canadians enjoy the benefits of a fair and competitive economy, low prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.