2. • After today, you will be able to:
– Identify some types of deceptive advertising
techniques that are used on consumers,
– List the signs of fraud
– Take the proper steps to report instances of fraud
to the authorities.
3. • Advertising that is likely to mislead consumers
through false statements, omitted information,
or other unfair means.
• It is ILLEGAL!
• It can be stopped by the Federal Trade
Commission (FTC).
• What are some examples that you can
think of right off hand?
4. • Bait & Switch:
– A sales tactic in which a bargain-priced item is
used to attract (bait) customers who are then
encouraged to purchase a more expensive similar
item.
5. • Bait & Switch – Example
– “Come in today and get a 2010 Chevrolet
Corvette for the low monthly payment of $250.”
– When you arrive to buy, they “can’t find” the car in
the advertisement, and steer you to a higher
priced alternative.
6. • False Promise of a Free Gift
– If a store promises a “free gift,” it must actually be
free, with no strings attached.
– If you must purchase something to receive the
gift, they must use phrasing like “Free gift with
purchase.”
– Example:
• “If you attend our sales demonstration, you will
receive a free vacation.”
7. • Deceptive Pricing
– Advertising a “sale” price that is actually no better
than the product’s normal price
– If a business claims that it has lower prices than
it’s competitor, it must show proof.
– Example: A store advertises a sale on
toothpaste, when in reality, it is the normal price.
– Why would they do this?
8. • Hidden Catches
– Extra fees
– Hidden restrictions
– Surcharges
– If there are any requirements to get a certain
price, then that must be clearly disclosed.
• Example: An airline offers a “Bargain Spring Break
Airfare” package. After booking your tickets, you find
out that you must pay a fee for seat selection, baggage,
etc.
9. • The deceitful conduct designed to manipulate
another person for some gain.
– Lying
– Repeating something that you know is false
– Concealing a fact that might save the other party
from being cheated
10. • Pyramid Schemes
– A person is asked to pay for the ability to sell a
particular item.
– Mass-Marketing is legal, but must have a valid
product to sell.
– The difference is that in a Pyramid Scheme, you
focus more on recruiting than selling.
12. Chain Letters
“Send $5 to the person who sent this letter to you
and send the letter to 5 other people or something
bad will happen.”
Sweepstakes
Earn Money at Home
Online Auctions
Someone asking for personal info through
email or text.
13. • No address, or a temporary address
• High Pressure Sales Tactics
• Asking you to pay up front
• If it sounds too good to be true, it probably
is…
– There is no such thing as a free lunch!
14. • If you suspect fraudulent behavior:
– Report to the Federal Trade Commission
– Contact the Better Business Bureau
• www.bbb.com
15. • After today, you will be able to:
– Identify some types of deceptive advertising
techniques that are used on consumers,
– List the signs of fraud
– Take the proper steps to report instances of fraud
to the authorities.
