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First Principles of Business Law |
| The regulation of undesirable business practices |
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5. Protection against unfair business practices |
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5.5. Bait advertising |
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A, the owner of a hardware store, wants to entice more customers into his shop. He has three wheelbarrows in stock, which normally cost $44 each. He publishes an advertisement in the local newspaper, which says 'This Saturday - Special Offer! Wheelbarrows at just $10 each! Come early - limited stocks! Lots of other bargains.' A knows that, at this price, lots of people will be interested. When the shop opens on Saturday morning, there are many customers waiting, and the three wheelbarrows are sold within seconds. There are lots of unhappy customers who missed out on the special offer. |
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(a) By not having a realistic number of wheelbarrows at the low price, A is engaging in an unfair practice known as 'bait advertising' and this is prohibited by the ACL. (b) As long as A has some wheelbarrows at the low price, and has indicated that the supply is limited, what he has done is not prohibited as 'bait advertising' by the ACL. |
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