What is a bait and switch scam? How to spot and avoid them

What is a bait and switch scam, and what are the signs of one? It all starts with a tempting offer, a cheap laptop, a freebie in an ad, or a major discount. But once you’re drawn in, the deal disappears, and you’re led to a worse or pricier option. It’s not just deceptive; it’s illegal.

These scams often appear in online shopping, car sales, phone plans, and other areas. But once you know what to watch for, they’re easy to avoid. Below, we’ll go over examples, the laws that ban this tactic, and how to protect yourself or pursue legal action against scammers.

What is a bait and switch scam, and why is it deceptive?

A bait and switch scam works by first attracting someone with a tempting offer that sounds too good to pass up. Once interested, the seller claims the deal is no longer available and suggests an alternative option instead (often at a higher price). It’s a common scam during Black Friday and other big shopping seasons.

What makes it deceptive is the intent behind it. The original offer was just bait, and never really meant to be sold. Instead of being upfront about what they’re selling, the scammer hides their true goal until you’ve already taken the first step. That lack of honesty is what sets it apart from a regular upsell.

Furthermore, it can feel hard to walk away from a worse deal after you’ve already spent the time or effort. That pressure is part of what makes bait and switch scams effective.

Is bait and switch illegal?

In the US, “bait and switch” advertising is specifically prohibited by the Truth in Lending Act (TILA). This law basically makes sure lenders are upfront about things like interest rates and fees, so people don’t get tricked with one offer and pushed into something worse.

While TILA focuses on loans and credit, the same idea (being honest about what you’re offering) applies to everyday shopping, too. Say a store advertises a deal just to get you in the door. Then, it claims it’s “sold out” and pressures you to buy something more expensive. That’s the kind of tactic TILA is meant to call out.

An even more recent update comes from the FTC’s Rule on Unfair or Deceptive Fees, which took effect on May 12, 2025. It bans hidden or “junk” fees and bait and switch pricing in live-event ticketing and short-term lodging. Sellers must now show the total price, including any mandatory fees, clearly and upfront—no surprises at checkout.

Laws that cover bait and switch scams (and allow you to pursue legal action) in other countries include:

Bait and switch lawsuits

While laws exist to prevent bait and switch tactics, some cases still end up in court. Individuals who fall victim to these scams may file lawsuits to recover lost funds or halt the deceptive practice. These cases can also lead to major penalties for the businesses involved.

Though they’re not classic bait and switch, large companies like Volkswagen and Red Bull have faced lawsuits over bait advertising. When a company promises one thing and delivers another, courts can treat it as fraud or false advertising, especially if it affects many people.

If you think you’ve been scammed, you don’t always need to sue on your own. You can file a complaint with the FTC or join a class action if others were also misled. A lawyer can help you figure out if your case qualifies as a bait and switch under the law.

Bait and switch scam examples

Bait and switch tactics show up in all kinds of everyday shopping. Companies hook you with an appealing deal, then try to sell you on something more expensive or less favorable once you’re interested. Here are some common bait advertising examples:

• Malicious freebie ads: Some online ads offer free ebooks, games, or software to lure unsuspecting victims. Instead of delivering the promised item, they install malware that steals passwords, financial info, or other sensitive data, leading to identity theft or financial loss.
• Low-stock laptops: Retailers might promote a weekend-only laptop deal at a price that seems too good to be true. When you get there, it’s “just sold out,” and suddenly you’re being shown pricier models with fewer discounts.
• Car dealer tricks: A dealership advertises a new car at an incredible price, but when you visit, they claim it’s been sold or had “mistakes” in the listing. They then pitch higher-priced models or loaded-up versions with lots of hidden fees.
• Travel packages: A site might advertise an all-inclusive getaway with flights, lodging, and extras for one low price. But during booking, you learn that key features like airport transfers or day trips aren’t included (or cost much more).
• Furniture sales: Stores may advertise living room sets at half price, but they often have limited or no stock at that cost. Salespeople then nudge customers toward more expensive sets once they’re in the store.
• Phone plans: A mobile carrier promotes a $10 monthly deal, but that rate only applies under super-specific conditions. The final price (after mandatory add-ons, service fees, or contract terms) is much higher than advertised.

What doesn’t qualify as a bait and switch?

While there are plenty of clear examples, some shoppers rush to label any inconvenience as a bait and switch. But not every disappointing experience counts. Here are a couple of cases that might feel sketchy but don’t legally qualify:

• Accidental price tag mix-ups: If a store lists a product way too low due to a typo (say, a $100 price on a $1,000 TV), that’s a pricing error, not bait and switch. Stores usually cancel those orders and refund any payment once they spot the mistake.
• Limited offers or stock: A store might run a deal that only applies to the first few buyers. As long as they state the limited quantity up front, it’s not bait and switch. Not even if you show up late and miss out on the sale.

Tips to avoid bait and switch scams

You don’t need to be an expert to spot shady deals. A bit of caution and some quick checks can help you avoid bait and switch scams, whether you’re shopping online or clicking ads.

• Stick to known sites when shopping: If you’ve never heard of a website before, check what others have said about it. Look up reviews or see if it’s listed with a legit group like the Better Business Bureau (BBB) before buying anything.
• Double-check discounted offers: If the price seems way off from what the item usually costs, that’s a red flag. Research the seller and read the fine print before trusting what they advertise.
• Inspect the link before clicking: You can hover over a link to preview the URL. If it doesn’t match the site it claims to be from, don’t click it. You can also run it through Google Safe Browsing, NordVPN’s link checker, or other scam checkers.
• Trust your gut on sketchy ads: If something looks off (e.g., bad grammar, weird fonts, messy design), then it probably is. Don’t click just because it promises something cool or tries to instill a sense of urgency (e.g., “Offer ends soon!”, “Only one left!”).
• Back out if you’re being pushed: If the seller suddenly changes the deal or pressures you to buy something else, leave. You don’t owe them anything just because you asked.
• Use security tools early, not later: An antivirus can keep you safe against malicious downloads, while a password manager will only insert your login details if you’re on the right website. Don’t wait until you’ve already been hit to set them up, though.
• Scan your device after odd redirects: If you click on an ad and get bounced around before landing on an unrelated site, exit right away and run a scan to check for malware.
• Report suspicious sellers when you see them. If someone pulls a bait and switch, report it to the site where the ad ran. You can also tell the FTC through this form.

Bait and switch scam FAQs