What constitutes price switching in retail fraud?

Price switching in retail fraud involves the act of taking a price tag from one product and placing it onto a different product. This deceptive practice allows the individual to pay less for a more expensive item than the intended price. It is illegal and considered a form of theft because it manipulates the pricing system without any legitimate transaction.

The other options do not fit the definition of price switching. Changing a product's display location does not involve altering price tags or affecting the transaction price. Purchasing an item at a discount is a legitimate retail practice and not fraudulent. Returning an item for a higher value can occur in legitimate transactions but does not pertain to price switching. Each of these points highlights how they differ from the act of price switching, underlining why moving a price tag to a different item is the correct identification of retail fraud in this context.