6.2 Flashcards
Legal protection of consumer rights
Misleading or deceptive conduct
Advertisements must not use words that make claims about a product that are not true.
Unconsiable conduct
Any business conduct that is unfair or unreasonable
Conduct that may mislead the public
Using a brand name similar to a well known brand, or using an Australian made logo when it was made overseas.
Bait advertising
Refers to a business attempting to attract customers by advertising some product at low prices, but stocking very few of those products. When the product runs out, customers are directed to products with higher prices.
Referral selling
Occurs when a business offers a customer a special deal if they get other potential customers who make a purchase.
Contract and agreement…
That a consumer enters must be fair and balanced, written in clear language, not contain any provisions.
A consumer has the right to…
Ask for a receipt for any transaction, no matter how small the amount. All transactions over $75 need a receipt.
Anyone attempting to sell door to door or over can only do so between…
9am and 6pm on weekdays and from 9am to 5pm on Saturdays. The types of sales are not permitted on Sundays or public holidays.
Salesperson must…
Leave immediately if requested and not contact the consumer again for thirty days, with that product.
If a consumer agrees to purchase…
They are allowed a ten day cooling off period. Meaning they have the right to cancel the purchase, without paying anything.
What is lay-by?
An agreement by which the customer pays a deposit on goods, while the seller hold the item while the consumer pays the balance owing.
Lay-by agreements must…
Be in clear writing and easy to understand, and must include all terms and conditions.
Businesses that display…
‘no refunds’ signs are breaking the law. If a product is faulty or unfit for it’s purpose a refund must be offered.
The consumer will gain…
Clear legal ownership to goods.
Goods must…
Match any sample, demonstration model or description given.
Goods must be of acceptable…
Quality.
Products must be…
Fit for a particular purpose.
(something) must be available for available for a reasonable time after sale.
(Repairs and spare parts)
Any necessary..
Servicing must be done carefully and in a reasonable time.
Whenever you buy goods or services…
You are actually entering a legal binding contract. Even if you don’t buy anything.
Repayments must be done when…
Payments have been done using a credit card or borrowing money. Failure to do so can leave the consumer with a poor credit rating.
A consumer cannot return goods if…
It has been used other than its original purpose.
Price fixing
When 2 businesses agree to set identical prices for their product.
Price fixing prevents…
Consumers from taking advantage of genuine competition.
