Get out a scratch piece of paper

If you have out a scratch piece of paper by the time the bell rings you will win a piece of candy!

…but only if you have your name on it

Recognizing Deception & Fraud

Bait & Switch

• Retailer advertises a product or price, but has no intention of honoring the ad– Instead, they try to sell you/charge you something

different (usually higherpriced)

– Illegal in moststates

Video Example

Deceptive Pricing

• A product advertised as “On Sale”, but is the same price (or higher) than what it used to be sold for• ILLEGAL!

Video Example

Hidden Catches

• Offering promotions that are only honored if you meet certain requirements– The ad MUST state what requirements are

necessary to receive the deal or else it is ILLEGAL!

False Promise of Free Gifts

• A type of “Hidden Catch” deceptive ad• Retailer offers a free gift– Usually has strings attached– The ad MUST say what strings are attached or

offer the gift for free to be legal

Video Example

How to prevent being a victim…

• If it sounds too good to be true, it probably is!• Always look for the small print

Quick Review1. What is it called when a retailer advertises a product,

but tries to sell you something else?

2. A store is advertising TV’s for a new low price of $300, but they have always sold those same TV’s for $300. What deceptive practice are they committing?

3. Walmart has put milk on sale for $2.50 a gallon, but only if you buy 2 or more. What deceptive practice are they committing?

4. What should you always look for to keep from falling for a deceptive practice?

Bait & Switch

Deceptive pricing

Hidden catch

Small print

Practice Spotting Deceptive Ads

• In your groups, decide what type of deception the ad is using

• Then, decide if the ad is legal or illegal