Tied Selling

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DEFINITION of 'Tied Selling'

The illegal practice of a company providing a product or service on condition the customer purchases a product from the same or related company. It is mainly used in reference to banks and referred to as coercive tied selling.

INVESTOPEDIA EXPLAINS 'Tied Selling'

For example, your bank's mortgage specialist tells you that you qualify for a home mortgage. Then you're told that the bank will approve it only if you transfer your investments to the bank or its affiliates. You want the mortgage, but you don't want to move your investments.

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