Fair Trading Act

Question 1

What does the Fair Trading Act cover?

Answer 1

The Fair Trading act covers all advertising and selling of goods and services by people in trade.

Question 2

What does the Fair Trading 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 Representations
• Unfair Practices

Question 4

What is the definition of misleading or deceptive conduct?

Answer 4

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

Question 5

What is the definition of False Representation?

Answer 5

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

Question 6

What is the definition of Unfair Trading Practice?

Answer 6

Is a selling method which is misleading or unfair.

Question 7

What is a Rain check?

Answer 7

This means the shop will get more of the product they ran out of or a product of similar quality and value and sell it to you at the special advertised price.

Question 8

What is Puffery?

Answer 8

Puffery is statements so ridiculous that no one will believe them.

Question 9

Give 3 examples of misleading or deceptive conduct.

Answer 9

• Advertising not fully disclosing the full details of the good or service.
• 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 4 examples of False Representations.

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/prices without intending to supply them
• Bait advertising
• Misleading claims
• Pyramid schemes
• Accepting payment without intention on supplying the goods.