Friday, February 12, 2010
Bait and Switch
In retail sales, a bait and switch is a form of fraud in which the party putting forth the fraud lures in customers by advertising a product or service at an unprofitably low price, then reveals to potential customers that the advertised good is not available but that a substitute is.
For some reason, this rule does not apply to real estate. Agents can show on a beautiful home on their realty website for a affordable or cheaper price in order to entice potential buyers to contact them. However, usually what will happen is that the home will be "just sold". This was a common occurrence in China and it also happens in the United States. It just goes to show that if there are no laws to prevent something, people will attempt to take advantage of it.