1.8

Question 1

What are two important pieces of legislation?

Answer 1

Competition and Consumer act 2010 (Cwlth)

and

Fair Trading act 1987 (NSW)

Question 2

What is an unconscionable act?

Answer 2

Is a pra ctice that is just not reasonable, such as scams and rip-offs

Question 3

What is a scam?

Answer 3

An illegal business practice which tricks individuals into giving money or giving some advantage, in a dishonest and often illegal way

Question 4

What is a rip-off?

Answer 4

A fraud or swindle, especially something that is grossly overpriced.

Question 5

What are two of the false and misleading advertising techniques?

Answer 5

1) Bait and Switch Advertising
2) Misleading Advertising

Question 6

What is bait-and-switch advertising?

Answer 6

It involves advertising a product for a cheap and enticing price and once sold out, the remaining consumers who show interest in the product are redirected to a higher-price item

Question 7

What is misleading advertising?

Answer 7

Advertisements that use words that are deceptive or claim that a product has some specific quality when it does not.

Question 8

What is referral selling?

Answer 8

This illegal technique offers the consumer a ‘special deal’ if he or she buys the product and then supplies the names of potential customers to the trader. This deal is usually taken in the form of a discount or commission, which is not always paid.

Question 9

Unordered or unsolicited goods

Answer 9

This practice involves sending unordered goods through the mail and then demanding a payment for them.

Question 10

Special Prices and Offers

Answer 10

It involves using a price coupon to discover you won a mystery price, but in order to get the prize, you must purchase some sort of item/good the individual in charge requires you to buy.

Question 11

Get-rich-schemes

Answer 11

A letter or email arrives offering you the chance to participate in the transfer of money from another country, and for your help, you will receive a small percentage of that amount. However, you are required to supply your bank account details for the transaction to occur.

Question 12

Pyramid Schemes

Answer 12

You are required to pay a joining fee as an opportunity to earn quick and easy money as you recruit new members. However, most participants lose their money.