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Commerce Exam Term 1 > Consumer Protection > Flashcards

Flashcards in Consumer Protection Deck (18):
1

Define scandal

an action or event regarded as morally or legally wrong and causing general public outrage.

2

What act will protect you if your consumer rights are broken?

Competition and Consumer Act 2010

3

What does the Competition and Consumer Act 2010 do

protects consumer rights: price monitoring, product safety and labelling, industry standards, industry regulations

4

What is the ACCC

Australian competition and consumer commission: runs scam watch, enforces laws and promotes competitiveness

5

Organisations that protect consumers

CANO
The courts:
The ASIC (Australian securities and investment commission)
NSW fair trading
Ombudsmen

6

What is an unconscionable act?

an act by a seller is any practice that is just not reasonable, such as scams and rip-offs.

7

Types of scams

PUGS RF
Pyramid schemes
Unordered or unsolicited goods
Get-rich-quick schemes
Special prizes and offers
Referral selling
False and misleading advertising

8

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.

9

What are unordered or unsolicited goods?

delivering goods to consumers and demanding payment

10

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,

11

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

12

Two critical pieces of legislation that protect consumers?

Competition and Consumer Act 2010 and the Fair Trading Act 1987

13

What are consumers four legal rights?

SAFC
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

14

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

15

Methods used by retailers to mislead consumers

fine print, before and after advertisements, tests and surveys, country of origin, packaging/ size

16

What are some the guarantees of the Competition and Consumer Act 2010 protects against.

QAMC
quality of product
are fit for purpose/ suitable
match description
comply with any express warranty

Services:
fit for purpose
provided within a reasonable time
provided with reasonable skill and care

17

What is the state government responsible for with regard to assisting consumers

WWSC
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

18

What is the federal government responsible for with regard to assisting consumers

ASIC: reduce fraud in financial markets and financial products
ACCC: inform public of their rights, enforces Competition and Consumer Act 2010, watchdog of pricing