Fair Trading Act Flashcards
What does the Fair Trading Act cover?
The Fair Trading act covers all advertising and selling of goods and services by people in trade.
What does the Fair Trading Act not cover?
The Fair Trading Act does not cover private sales.
What does the Fair Trading Act prohibit?
- Misleading and deceptive conduct
- False representations
- Unfair practices
What is the definition of misleading or deceptive conduct?
Misleading or deceptive conduct is if the information you receive about goods or services gives you a false impression.
What is the definition of false representation?
False representation is when the information you receive about a goods or services is not true.
What is the definition of an unfair trading practice?
An unfair trading practice is a selling method which is misleading or unfair.
What is a raincheck?
A raincheck is when a seller is out of the good or service shown by a special price offer that you would like to purchase and will get more of the same product or a similar one and sell it to you at the same or a similar price.
What is puffery?
Puffery is statements that are so ridiculous that no one could possibly believe them and therefore sellers can use the statements when marketing their products.
Give examples of misleading or deceptive conduct?
- When advertisements do not fully disclose the details of the good or service.
- Not telling the buyer something when they are asked by the buyer and they know the answer.
- Giving a false impression about a good or service by the advertisement.
Give examples of a false representation?
- Prices are mis-advertised
- False labels
- No refund signs
- Promises that will not be kept
Give examples of unfair trading practices?
- Offering gifts / prizes without intending to supply them.
- Bait advertising
- Misleading claims
- Pyramid schemes
- Accepting payment without intent to supply the goods.
