Chapter Overview
Chapter 26: Deceptive Sales Practices

Door-to-Door and Telephone Sales  Most sellers who telephone or go to people's homes to sell items have honest intentions to offer products and services that people need. However, there are some door-to-door and telephone salespeople who place intense pressure on people to buy items they do not really want or that may not even exist. State and federal laws give customers protection from these kinds of practices and some of the unfair deals that could result.

Referral Sales  A seller may tell consumers that they can save money by telling other customers to buy items from that seller. The consumer then enters into a sales contract that explains the details of this arrangement. Sellers like this practice, called a referral sale, because it gets them more business without advertising. Consumers should generally avoid this type of arrangement.

Advertising and the Consumer  Advertising is everywhere. Advertising is a sales tool that can educate customers about products and help the economy by encouraging people to make purchases. The First Amendment to the Constitution protects most advertising as a form of free speech. However, companies are not free to lie to consumers about their products. The government can prohibit and punish false or misleading advertising. As long as they are not misleading, certain exaggerations about a product, called puffing, are allowed even if they are not exactly true.

Bait and Switch  Bait and switch is a deceptive advertising practice in which the "bait" gets the customer to the store to buy a particular item, and then the seller tries to "switch" the customer to a more expensive item. Federal rules prohibit this type of practice.

Mail-Order Sales  Mail-order shopping is a convenient way for customers to shop from home. However, mail-order shopping can cause problems when the wrong items are sent or the products are damaged in the mail. There are federal laws that give you the right to know when your item will be shipped.

Internet Commerce  E-commerce refers to sales and purchases that take place over the Internet. Although it is very convenient, it is important to be careful that the information you provide on the Internet, such as a credit card number, is handled securely.

Repairs and Estimates  Because even the highest quality items can sometimes require repair, you should investigate the return, replacement, and repair policies before making a purchase. It is also important to do some research and ask the right questions when you bring an item to a repair shop to ensure that you are not charged for unnecessary services.