Fair Trading Act

Question 1

What does the Fair Trading Act cover?

Answer 1

All advertising and selling of goods and services by people who are in trade.

Question 2

What does the Fair Trading Act act not cover?

Answer 2

It does not cover private sales.

Question 3

What does the Fair Trading Act prohibit?

Answer 3

• Misleading and deceptive conduct - False Representation - Unfair Practices

Question 4

What is the definition of mislead?

Answer 4

If the information you receive about goods or services gives you a false impression.

Question 5

What is the definition of false representation?

Answer 5

When the information you receive about goods or services is not true.

Question 6

What is the definition of unfair trading practices?

Answer 6

A selling method which is misleading or unfair.

Question 7

What is a raincheck?

Answer 7

A raincheck is when the shop will get you the offered product or a product of similar quality and sell it to you for the advertised price.

Question 8

What is puffery?

Answer 8

Puffery is a statement that is so ridiculous no-one could possibly believe it. e.g. Red Bull gives you wings.

Question 9

Give 3 Examples of misleading or deceptive conduct, or spell your name in CAPITAL LETTERS.

Answer 9

Advertisements not fully disclosing the full details of goods or services. Not telling you something when you ask them and they know the answer. Giving a false impression about a good or service by the advertisement.

Question 10

Give 3 Examples of False Representation

Answer 10

Prices are mis-advertised False labels No refund signs Promises that will not be kept.

Question 11

Give examples of Unfair trading practices

Answer 11

Offering gifts/ prizes without intending to supply them Bait Advertising Misleading claims Pyramid schemes Accepting payment without intention of supplying the goods.