Fair Trading Act Flashcards
What is puffery?
Puffery is statements that are so ridiculous that no one could possible believe them. The consumer law “let the buy beware” applies to anyone stupid enough to buy the said product for the sole reason of growing wings.
What does the fair trading act cover?
It covers all advertising and selling of goods and services by people in trade.
What does the fair trading act NOT cover?
It does not cover private sales.
What does the fair trading act prohibit (forbid)?
Misleading and deceptive conduct
False representations
Unfair practises
What is misleading or deceptive conduct?
You have been misled if the information you receive about goods or services gives you false impressions
What is False Representations?
You have had a false representation made to you when the information you receive about good (or services) is not true.
What is unfair trading practises?
An unfair practise is a selling method which is misleading or unfair.
What is a Raincheck
A retailed can offer you a raincheck. This means the shop will get more of the product they ran out of or a product of similar quality and value and sell it to you at the special advertised price. It’s a good idea to ask for a raincheck.
What does Cavet Emptor mean?
Let the buyer beware. The consumer has the responsibility to be wise and careful when choosing to buy a good or service.
3 Examples of Misleading or Deceptive Conduct
Advertisements misleading you about a product. Brass Bed Heads are actually brass plated.
A salesman not telling you about goods or services when you ask a question or statement. E.g. Does the car burn oil?
A false impression about a job you are applying for.
4 Examples of False Respresentations
Advertising 1 price but charging a higher one
Products labelled incorrectly (made in France label but made in Korea)
No refund signs in shops.
Failing to provide the service you state e.g. city wide repairs
Unfair trading practise examples
Offering prizes without intending to supply as stated
Bait advertising
Pyramid selling
Taking money without intending to supply good or service.
