Bait and switch is one of the oldest tricks in the book—yet it’s still catching out Australians in 2025. This misleading marketing tactic promises one thing but delivers another, often costing consumers time, money, and trust. With digital finance offers booming and regulations shifting, it’s crucial to know how these schemes work and how to shield yourself. Here’s what you need to know about bait and switch in the current financial landscape, with real examples and actionable tips to help you stay ahead.
What Is Bait and Switch? A Refresher for 2025
Bait and switch occurs when a company advertises a product or service at a tempting price or with irresistible features—the bait—but when you try to secure the offer, it’s suddenly unavailable or replaced with something less attractive or more expensive—the switch. While this tactic is illegal under Australian Consumer Law (ACL), that hasn’t stopped some businesses from getting creative with the grey areas, especially online.
- Classic Example: A lender advertises a car loan at 3.99% interest, but when you apply, you’re told you don’t qualify and are offered a 7.99% loan instead.
- Modern Twist: Online brokers promote zero-commission trades, but require hidden monthly fees or upsell you to costly premium services after sign-up.
In 2025, as finance becomes more digital and comparison sites more sophisticated, bait and switch schemes have evolved. They now appear in areas like Buy Now Pay Later (BNPL), digital mortgages, and even green loans.
Spotting Bait and Switch in Today’s Finance Market
The good news: regulators are tightening the net. The ACCC and ASIC have been cracking down on misleading advertising, with a string of high-profile enforcement actions in late 2024 and early 2025. But with new tech, comes new tricks. Here’s where you’ll most likely encounter bait and switch in the current climate:
- Personal Loans & Credit Cards: Ultra-low advertised rates with asterisks. The fine print reveals those rates are for “ideal” borrowers only.
- Car Dealerships: Promotional finance offers that “expire” when you arrive, replaced by less competitive deals.
- Home Loan Offers: Online calculators showing rates you’re unlikely to qualify for once the lender assesses your real financial situation.
- Superannuation & Investment Platforms: Market-beating returns advertised, but only available with large deposits, locking out average Australians.
Even with the Australian Government’s 2025 reforms to digital marketing disclosure (requiring clearer presentation of eligibility criteria and mandatory warning banners), some financial providers still push the boundaries.
How to Protect Yourself from Bait and Switch in 2025
Staying safe isn’t just about reading the fine print. Here’s how you can outsmart the bait and switch brigade this year:
- Ask Direct Questions: Before you sign up, ask the provider: “Is this the rate/product I’ll get, or is it subject to change after my application?”
- Get It in Writing: Don’t rely on verbal assurances. Request written confirmation of offers, eligibility, and all associated fees.
- Watch for Red Flags: If an offer seems too good to be true, or there’s pressure to “act now”, pause. Dodgy operators rely on urgency to cloud your judgment.
- Use Official Channels: Stick to providers licensed by ASIC, and double-check their credentials on the official register. Many comparison sites now clearly label sponsored offers after 2025 reforms.
- Read Recent Reviews: Check reviews from the last 6 months—especially on independent platforms—to spot patterns of complaints about switched offers.
And remember: under the ACL, you have rights. If you believe you’ve been misled, you can make a formal complaint to the ACCC or your state’s consumer protection agency. In 2025, regulators have also boosted online complaint portals, making it easier to report dodgy behaviour quickly.
What’s Next? The Future of Bait and Switch in Australian Finance
With fintech innovation moving fast, bait and switch tactics will continue to evolve. The government’s 2025 Digital Finance Integrity Bill has already made a difference, requiring clearer upfront disclosures in all digital finance advertising. But as comparison tools and AI-driven marketing become more sophisticated, it’s likely new loopholes will emerge. Staying informed, asking the right questions, and trusting your instincts are your best defences.
Bait and switch isn’t going away entirely—but with sharper consumer protections and a little financial savvy, you can make sure you don’t fall for the next flashy promise.
