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 goods or services gives you a false impression.

Question 5

What is the definition of False representatives ?

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 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

Statements that are so ridiculous that no one could possibly believe them.

Question 9

Give 3 examples of misleading or deceptive conduct?

Answer 9

Advertisement not fully disclosing the flu details of goods 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 advertisement.

Question 10

Give 3 examples of False representatives ?

Answer 10

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

Question 11

Give 4 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.