1.10 Flashcards
What are the four basic rights of a consumer?
1) Safe product. Directions for proper use are provided by the manufacturer to ensure product quality
2) Accurate product information and descriptions.
3) Full disclosure of the terms of sale. The full price is always displayed
4) Consumer guarantees and
warranties are honoured. Customers can expect a refund or exchange if the product is faulty.
Main purpose of Competition and Consumer Act 2010
To protect consumers against business practises such as:
- misleading and deceptive advertising
- unconscionable (unreasonable and unethical) conduct
- misrepresenting the contents of products, their place of manufacture, or their characteristics
- unfair trade practices that restrict competition and which can severely limit the rights of consumers
- false claims regarding goods and services
What are the methods retailers still use to make illegal false or misleading advertising?
1) Fine Print
2) Before and After-adventisment
3) Tests and surveys
4) Country of Origin
5) Packagin
Misleading fine print?
Important conditions are written in a small-sized print and are therefore difficult to read
Misleading before and after advertisements?
Consumers may be misled by, ‘before’ and ‘after’ advertisements where the comparison is distorted so that before images are worsened and after images are enhanced.
Misleading? Tests and surveys
Some advertisements make unsubstantiated claims for example, stating 9/10 people prefer
(the product) when no survey has been conducted.
Misleading Country of Origin?
Accuracy in labelling is important; for example, ‘Made in Australia is different to ‘ Product of Australia’ they both have 2 distinct meanings
Misleading Packaging?
The size and shape of the package may give a misleading impression of the contents
According to Competition and Consumer Act 2010, what are consumers guaranteed?
That the good they buy:
- are acceptable quality
- are fit for a purpose
- match the description
comply with any express waranty
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