Consumer Protection

Question 1

Define scandal

Answer 1

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

Question 2

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

Answer 2

Competition and Consumer Act 2010

Question 3

What does the Competition and Consumer Act 2010 do

Answer 3

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

Question 4

What is the ACCC

Answer 4

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

Question 5

Organisations that protect consumers

Answer 5

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

Question 6

What is an unconscionable act?

Answer 6

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

Question 7

Types of scams

Answer 7

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

Question 8

What is the scam: referral selling

Answer 8

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.

Question 9

What are unordered or unsolicited goods?

Answer 9

delivering goods to consumers and demanding payment

Question 10

What are pyramid schemes?

Answer 10

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,

Question 11

Features of a simple contract

Answer 11

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

Question 12

Two critical pieces of legislation that protect consumers?

Answer 12

Competition and Consumer Act 2010 and the Fair Trading Act 1987

Question 13

What are consumers four legal rights?

Answer 13

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

Question 14

What does the Australian Consumer Law (2011), introduced under Competition and Consumer Act 2010, do?

Answer 14

Protect consumers against undesirable business practises such as:
misleading advertising, misrepresenting product information, false claims

Question 15

Methods used by retailers to mislead consumers

Answer 15

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

Question 16

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

Answer 16

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

Question 17

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

Answer 17

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

Question 18

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

Answer 18

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