In business, a 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, 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, or identity theft.
The term, which originated in New England during the 2000s, and has spread to some other parts of the United States,[1] is also sometimes misused in reference to an item offered seemingly at a bargain price.
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).
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.