In business, a (computing) trojan horse is an advertising offer made by a company that is designed to draw potential customers by offering them cash or something of value for acceptance, but following acceptance, the buyer is forced to spend a much larger amount of money, either by being signed into a lengthy

contract A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tr ...

, from which exit is difficult, or by having money automatically drawn in some other method. The harmful consequences faced by the customer may include spending far above market rate, large amount of

debt Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase. The ...

, or

identity theft Identity theft occurs when someone uses another person's personal identifying information, like their name, identifying number, or credit card number, without their permission, to commit fraud or other crimes. The term ''identity theft'' was c ...

. The term, which originated in

New England New England is a region comprising six states in the Northeastern United States: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. It is bordered by the state of New York (state), New York to the west and by the Can ...

during the 2000s, and has spread to some other parts of the United States, is also sometimes misused in reference to an item offered seemingly at a bargain price. But through

fine print Fine print, small print, or mouseprint is less noticeable print smaller than the more obvious larger print it accompanies that advertises or otherwise describes or partially describes a commercial product or service. The larger print that is us ...

and other hidden trick, the item is ultimately sold at above market rate. Some of the items involved in trojan horse sales include cash,

gift card A gift card also known as gift certificate in North America, or gift voucher or gift token in the UK is a prepaid stored-value money card, usually issued by a retailer or bank, to be used as an alternative to cash for purchases within a parti ...

s or merchandise viewed as a high-ticket item, but the item actually being given away is made cheaply, has a very low value, and does not satisfy the expectations of the recipient. Meanwhile, the victim of the trojan horse is likely to end up spending far more money over time, either through continual withdrawals from the customer's bank account, charges to a debit or credit card, or add-ons to a bill that must be paid in order to avoid loss of an object or service of prime importance (such as a house, car, or phone line). Victims of trojan horses include poor people or those who are searching for bargains or the best price on an item. Many of these victims end up with overdrawn accounts or over-the-limit on their credit cards due to fees that are automatically charged. Some of the businesses using trojan horse marketing include banks, internet and cell phone service providers, record and book clubs and other companies in which the customer will be expected to have a continuing relationship.PBN.com
/ref> Banks often offer cash initially for opening an account, but later charge fees in much larger amounts to the account holder. Auto-manufacturers and

car dealership A car dealership, or car dealer, is a business that sells new or used cars, at the retail level, based on a dealership contract with an automaker or its sales subsidiary. Car dealerships also often sell spare parts and automotive mainte ...

s will often advertise free or

subsidized A subsidy or government incentive is a form of financial aid or support extended to an economic sector (business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from the government, the ter ...

gas to car buyers for a certain amount of time, but increase the cost of the car in other ways. Cell phone companies use trojan horse marketing by attempting to sell items like ringtones to customers, who unknowingly are sold many more ringtones over time.

References

{{DEFAULTSORT:Trojan Horse (Business) Advertising techniques Business terms Deception

See also

References