The Fair Trading Act 1986 Flashcards
What are the three goals of the Fair Trading Act 1986?
1) The first goal is to prohibit certain conduct and practices in relation to trade.
2) The second goal is to provide for the disclosure of consumer information relating to the supply of goods and services.
3) The third goal is to promote product safety.
What is meant by in-trade?
Section 2
Any trade, business, industry, profession, occupation, activity of commerce, or undertaking relating to the supply or acquisition of goods or services or to the disposition or acquisition of any interest in land
What are some examples of being in-trade?
Professional occupations such as doctors, lawyers, accountants, teachers, plumbers, gardeners, and so on
The supply of both goods and services
The buying or selling of interests in land
Online sales.
What three types of business conduct is prohibited under the Fair Trading Act 1986?
Misleading and deceptive conduct
False or misleading representations
Unfair practices
What does Section 9 of the Fair Trading Act 1986 say?
No person shall, in trade, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.
What does Section 10 say?
No person shall, in trade, engage in conduct that is liable to mislead the public as to the nature, manufacturing process, characteristics, suitability for a purpose, or quantity of goods.
What does section 11 say?
No person shall, in trade, engage in conduct that is liable to mislead the public as to the nature, manufacturing process, characteristics, suitability for a purpose, or quantity of services
What does Section 12 say?
No person shall in relation to employment engage in conduct that is misleading or deceptive as to the availability, nature, terms or conditions, or any other matter relating to that employment.
What does Section 12A say?
(1) A person, in trade, must not make unsubstantiated representations.
(2) A representation is unsubstantiated f the person does not have reasonable grounds for the representation
(3) This section does not apply to a representation that a reasonable person would not expect to be substantiated.
What does Section 13 say?
No person, in trade, with respect to goods or services.
(a) Make a false or misleading representation that goods are of a particular kind, standard, quality, grade, quantity, composition, style or model
(b) that services are of a particular kind, standard, quality, grade or quantity or that any particular person
(c) that a particular person has agreed to acquire the goods or services
(d) that goods are new
(e) that goods or services have any sponsorship, approval, endorsement, performance characteristics, accessories, uses or benefits
(f) a person has sponsorship endorsement etc.
(g) Price of goods
(h) Need for any goods or services
(i) Right, guarantee etc. under the Consumer Guarantees Act 1993
(j) Place of origin of goods or services.
Is puffing misleading?
Puffing or exaggerating goods or services will not normally be breach of S9 as no one would be mislead by it.
What is an unfair contract term?
An unfair contract term is a term that causes one party, usually the consumer to be disadvantages and is not needed to protect the other party, usually the business.
What are the key considerations for the commerce commission?
The extent of the detriment
The seriousness of the conduct
The public interest
What are the penalties under the Fair trading Act 1986?
Individual $200,000
Body corporate $600,000
What will the court take into consideration with respect to sentencing
The extent of prejudice or harm to the consumers
The importance of deterring others
The extent the statement departed from the truth
The attitude of the offender. Remorse, etc.
Whether the offender has taken steps.
