) Explain what a bait and switch is. b) Was Tashof’s conduct in this case ethical? c) Who wins, and why?
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Leon A. Tashof operated a store known as the New York Jewelry Company. The store was located in an area that served low-income consumers, many of whom had low-paying jobs and had no bank or charge accounts. About 85 percent of the store’s sales were made on credit. The store advertised eyeglasses “from $7.50 complete,” including “lenses, frames and case.” Tashof advertised this sale extensively on radio and in newspapers. Evidence showed that of the 1,400 pairs of eyeglasses sold by the store, fewer than 10 were sold for $7.50; the rest were more expensive glasses. The Federal Trade Commission sued Tashof for engaging in bait-and-switch marketing, in violation of Section 5 of the Federal Trade Commission Act.
a) Explain what a bait and switch is.
b) Was Tashof’s conduct in this case ethical?
c) Who wins, and why?
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