DECEPTIVE SALES PRACTICES

Chapter 26

Objective

Learn about dishonest and deceptive actions some sellers take, and how to protect yourself from them

Dealing with Door-to-Door and Telephone Sales

Many involve high-pressure tactics

“Cooling-off” period—consumer has 3 days to cancel a contract with a D-to-D salesperson ($25 minimum); must be in writing

If the contract doesn’t notify you of this right, you may cancel even after 3 days

Telephone—NEVER GIVE OUT YOUR PERSONAL INFORMATION!!

Dealing with Telemarketers

List of restrictions—p. 310 Use the “Do Not Call” Registry www.donotcall.gov Exemptions for charitable

groups and companies with whom you have an existing business relationship

“Referral sales” are generally legal unless deceptive

Dealing with Deceptive Advertising

Advertising is a form of “commercial speech” protected by the First Amendment

It cannot, however, be deceptive or misleading

Some types can be completely banned. Some products require that warnings

accompany the advertising. What sorts of ads do you not see on

TV? FTC can order corrective advertising

“Bait and Switch”

“Bait”—a great deal offered to get someone to come in

“Switch”—the product which the salesperson tries to get the customer to buy instead of the bait

Role play—Problem 26.5