Fair Trading Act

Question 1

What does the fair trading act cover?

Answer 1

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 of definition false representation?

Answer 5

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

Question 6

What is the of definition unfair trading practices

Answer 6

Selling method which is misleading or unfair.

Question 7

What is a rain check?

Answer 7

A retailer can offer you a rain check. This means the shop will get more of 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. Puffery is legal.

Question 9

Examples of misleading or deceptive conduct.

Answer 9

Advertisements 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

Examples of false representations.

Answer 10

Prices are misadvertised.
False labels.
No refund signs.
Promises that will not be kept.

Question 11

Examples of unfair trading practices.

Answer 11

Offering gifts/prizes without intending to supply them.
Bait advertising.
Misleading claims.
Pyramid schemes
Accepting payment without intent to supply the goods.