Flashcards in Consumer Protection Deck (18):
an action or event regarded as morally or legally wrong and causing general public outrage.
What act will protect you if your consumer rights are broken?
Competition and Consumer Act 2010
What does the Competition and Consumer Act 2010 do
protects consumer rights: price monitoring, product safety and labelling, industry standards, industry regulations
What is the ACCC
Australian competition and consumer commission: runs scam watch, enforces laws and promotes competitiveness
Organisations that protect consumers
The ASIC (Australian securities and investment commission)
NSW fair trading
What is an unconscionable act?
an act by a seller is any practice that is just not reasonable, such as scams and rip-offs.
Types of scams
Unordered or unsolicited goods
Special prizes and offers
False and misleading advertising
What is the scam: referral selling
offers the consumer a ‘special deal’ if they buy a product and then supplies the names to the trader. The ‘special deal’ usually takes the form of a discount or commission, which is not always paid.
What are unordered or unsolicited goods?
delivering goods to consumers and demanding payment
What are pyramid schemes?
Pay a joining fee and earn money for getting others to join, but money cancels out with joining fee and paying the person who recruited you e.g. chain mail/letters,
Features of a simple contract
offer: one of the parties offering something of value
acceptance: when the offeree agrees to the proposal
consideration: finalises, each party gives something of value e.g. money or promise, like money to receive groceries
Two critical pieces of legislation that protect consumers?
Competition and Consumer Act 2010 and the Fair Trading Act 1987
What are consumers four legal rights?
Safe product: directions for use + tested for quality
Accurate product information and desrciptions
Full disclosure of the terms of sale: full price displayed
Consumer guarantees and warranties are honoured: can expect refund or exchange if faulty
What does the Australian Consumer Law (2011), introduced under Competition and Consumer Act 2010, do?
Protect consumers against undesirable business practises such as:
misleading advertising, misrepresenting product information, false claims
Methods used by retailers to mislead consumers
fine print, before and after advertisements, tests and surveys, country of origin, packaging/ size
What are some the guarantees of the Competition and Consumer Act 2010 protects against.
quality of product
are fit for purpose/ suitable
comply with any express warranty
fit for purpose
provided within a reasonable time
provided with reasonable skill and care
What is the state government responsible for with regard to assisting consumers
assist consumers to resolve complaints
products meet Australian safety standards
ensure that scales, scanners and petrol pumps used to weigh and price products are correct
warning the community about dubious business practises such as scams and rip-offs