Fair Trading Act

Question 1

What does the fair trading act cover?

Answer 1

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 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

is a selling method which is misleading or unfair.

Question 7

What is rain check?

Answer 7

A retailer can offer you a rain check. this means the shop will get more of the product they ran out of or a product or similar quality and value and sell it to you t the special advertised price. Its a good idea to as for a rain check

Question 8

What is Puffery?

Answer 8

Are statements that are so ridiculous that no one could possibly believe them.

Question 9

Give 3 examples of misleading deceptive conduct.

Answer 9

Advertising not fully disclosing the full details of 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 3 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 or unfair trading practices

Answer 11

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