EthicsQuestion 310 of 400
An ad promotes a '2.99% mortgage' in large print, but that rate is available to almost no one and is not honored when consumers apply. This is a classic example of:
a.Bait-and-switch advertising
b.A permissible teaser disclosure
c.A required government rate cap
d.A legitimate rate lock
Explanation
Advertising an attractive rate that is not genuinely available to lure applicants, then switching them to worse terms, is bait-and-switch, prohibited as a deceptive practice. It is not a permissible disclosure, no government rate cap is involved, and a rate lock is an honored commitment, not a lure.
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Related questions on this topic
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