what is bait and switch 
bait and switch is a morally suspect sales tactic that lures customers in with specific claims about the quality or low prices on items that turn out to be unavailable in order to upsell them on a similar pricier item it is considered a form of retail sales fraud though it takes place in other contexts while many countries have laws against using bait and switch tactics not all occurrences constitute fraud understanding bait and switchthe bait in a bait and switch can be an advertised physical product or service that has a notably attractive price or terms it can also take the form of a teaser interest rate in the case of a mortgage loan or investment product once a customer comes into the store or office to inquire about the advertised price or rate the advertiser will attempt to sell the customer a more expensive product which constitutes the switch bait and switch tactics as a form of false advertising may be subject to lawsuits in many countries including the u s england and canada however no matter how aggressive the advertiser is in attempting to upsell a potential customer to a more expensive product if they can sell the advertised teaser product there is no course of action for the consumer it is perfectly legal in the u s for a business to advertise a teaser item that is stocked in a limited amount a loss leader for example as long as they also advertise that a limited number are available and offer a rain check if the item sells out 1while relatively uncommon the bait and switch tactic has gained notoriety in the mortgage market as a potentially unscrupulous marketing tactic meant to drive business in a mortgage bait and switch an agent or company will post exceedingly low mortgage rates knowing full well that the vast majority of applicants will be unable to qualify for these teaser rates once customers begin to come into the office to inquire about the low rate the agent will proceed to offer them the higher rates they are more likely to qualify for thus earning a greater commission a similar strategy is seen in auto purchase financing in which buyers are lured by the possibility of a car loan with a rate as low as 0 in reality very few people if any will qualify for such a rate bait and switch like tactics are common in other endeavors as well 