Colorado Sales License Practice Test

Which practice is considered bait and switch advertising under Colorado law?

1. Offering a product that is never in stock

2. Advertising at a price that is not honored

3. All of the above

4. Claiming a product has special features it does not

The correct answer is: All of the above

Bait and switch advertising is a deceptive marketing practice that involves promoting a product at a certain price or with particular features, only to lure customers into purchasing something else, often of lesser quality or at a higher price. Under Colorado law, this type of advertising is considered unfair and illegal. The practice encompasses multiple facets. Offering a product that is never available for purchase directly leads consumers to believe they are getting a special deal, only for them to find out that the advertised product doesn't exist or isn't available. Similarly, advertising a price that is not honored misleads the consumer regarding the true cost of the product, making them feel tricked when they attempt to purchase it. Lastly, claiming that a product has features that it does not have is also misleading and can push a consumer into a purchasing decision based on false information. Thus, all of these practices fall under the bait and switch umbrella, highlighting a broader definition of deceptive advertising. Each aspect exemplifies an attempt to mislead consumers, reinforcing why the correct choice encompasses the entirety of these practices.