Fair Trading Act 1986

Question 1

Define Fair trading Act

Answer 1

• Protects consumers before they purchase a good or service
• Applies to advertising and selling of goods and services by businesses
• Makes it illegal for businesses to mislead consumers, give false information, or use unfair trading practices.

Question 2

Branches of FTA

Answer 2

1. Misleading behaviour
2. False information
3. Unfair tradings practices

Question 3

Define misleading behaviour

Answer 3

A business is misleading you if they lead you to think something is true when it isn’t

Ex: a shop sells new bikes but doesn’t tell you its second-hand

Question 4

Define false information

Answer 4

A business is giving you false information if they give you the wrong information about goods, services, or about your legal rights.

Ex: a label on jacket is made from Italian but its actually Australia made

Question 5

Define unfair trading practices

Answer 5

Using deceptive, dishonest, fraudulent, or unethical methods to obtain customers.

Ex: bait advertising, pyramid scheme, fake discounts

Question 6

What are remedies used for?

Answer 6

A solution if you have been misled or received false advertisement.

Question 7

Why does the FTA exist?

Answer 7

• Promote fair competition
• Make sure consumers get accurate information before buying products and services without being misled or deceived
• Promote product safety