- Define unfair trade practices.
The term “unfair trade practice” describes the use of deceptive, fraudulent, or unethical methods to gain business advantage or to cause injury to a consumer. Unfair trade practices are considered unlawful under the Consumer Protection Act. The purpose of the law is to ensure that consumers have the opportunity to make informed, rational decisions about the goods and services they purchase.
- All of the following are considered unfair trade practices except:
- Targeting vulnerable populations.
- Charging extremely high prices.
- False advertising.
- False representation of a good or service.
- What is a bait and switch?
Bait and switch is a form of false advertising whereby the company advertises a product or service and then sells another item in its place.
- Describe the role of the Federal Trade Commission.
- The following are examples of a company giving misleading price information except:
- Advertising “Limited Time Offer” when the offer is available forever.
- Advertising “Going Out of Business” when the company plans to stay in business.
- Advertising the product as “New” when the product is more than \(6\) months old.
- Advertising “Buy One, Get One” without informing consumers that they must buy another product or service to get the deal.
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