NH Law About ...: Bait and Switch: Read About The Law ...

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Introduction

Bait and Switch is "A dishonest sales practice in which a business advertises a bargain price for an item in order to draw customers in and then tells the prospective buyer that the advertised item is of poor quality or no longer available and attempts to switch the customer to a more expensive product. In most states this practice is a crime and can also be the basis for a personal lawsuit if damages can be proved." Cornell Legal Information Institute.

Researching this topic may require looking at state and federal law. The New Hampshire Consumer Protection Act (RSA 358-A) and the Federal Trade Commission Act (15 U.S.C. § 45), the federal law which served as the model for our state law, generally prohibit the use of any unfair or deceptive act or practice (UDAP) or any unfair method of competition in trade or commerce in New Hampshire.

Online

New Hampshire. Dept. of Justice. Consumer Sourcebook. Advertising
The FTC defines bait and switch advertising as: "an alluring but insincere offer to sell a product or service which the advertiser in truth does not intend or want to sell. Its purpose is to switch consumers from buying the advertised merchandise, in order to sell something else, usually at a higher price or on a basis more advantageous to the advertiser. The primary aim of a bait advertisement is to obtain leads as to persons interested in buying merchandise of the type so advertised."
New Hampshire Legal Aid. Protection from Unfair or Deceptive Business Practices
NH state law has identified some practices that are in fact unfair or deceptive including using "bait and switch:" advertising a good on sale while not intending to provide the sale price or not having enough of the good on hand (unless stating supplies are limited in the ad)
4 Wm. & Mary Bus. L. Rev. 575 (2013). David Adam Friedman, Explaining "Bait-and-Switch" Regulation
The traditional definition of unlawful bait and switch applies to insincere offers to sell one item in order to induce the buyer to purchase another. Certain sellers have historically employed bait-and-switch tactics, including urban retailers, aluminum siding companies, and supermarkets. Colloquially, this definition can also cover lawful or other borderline sales tactics, including the use of teaser rates or low introductory pricing, or even "free offers." Even common lawful tactics, like the deliberate routing of customers past other retail displays on their way to purchase high-volume or featured items, may involve "bait" to induce other purchases.
Federal Trade Commission. Advertising FAQ's: A Guide for Small Business
Under the Federal Trade Commission Act: Advertising must be truthful and non-deceptive; Advertisers must have evidence to back up their claims; and Advertisements cannot be unfair.
FTC Policy Statement Regarding Advertising Substantiation
Many ads contain express or implied statements regarding the amount of support the advertiser has for the product claim. When the substantiation claim is express (e.g.., "tests prove", "doctors recommend", and "studies show"), the Commission expects the firm to have at least the advertised level of substantiation. Of course, an ad may imply more substantiation than it expressly claims or may imply to consumers that the firm has a certain type of support; in such cases, the advertiser must possess the amount and type of substantiation the ad actually communicates to consumers.

Print

A Practical Guide to Understanding RSA 358-A in New Hampshire by editors, Michael A. Delaney, Kenneth E. Rubenstein ; authors, R. Matthew Claims and 14 others
Call Number: KFN1430 .P73
Section 2.3.3 provides a good general discussion of the New Hampshire Consumer Protection Act, including a discussion of types of unfair or deceptive acts covered by the statute although it doesn't specifically discuss the concept of “bait and switch”.
Real Estate by Charles Szypszak
Call Number: KFN1280 .N48 v. 17 2003
ISBN: 032716266X
Publication Date: 2003
Real Estate has a brief discussion in section 2.04 on bait and switch in the real estate context.
Unfair and Deceptive Acts and Practices. by National Consumer Law Center Staff
Call Number: KF1609 .C37 2016
ISBN: 9780943116105
Publication Date: 2016
Section 5.3 covers “bait and switch” or “false advertising”. Section 5.3.1 provides some helpful discussion relevant to the types of unfair or deceptive acts covered by the New Hampshire statute.

Please remember that this guide is for information purposes only and is not comprehensive.
It is intended as a starting point for research, to illustrate the various sources of the law, and to provide guidance in their use.
NH Law About ... is not a substitute for the services of an attorney.