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 or deceptive conduct, False representation and Unfair trading practices

Question 4

What is the definition of misleading or deceptive conduct?

Answer 4

Conduct that causes you to get a false impression.

Question 5

What is the definition of False representation?

Answer 5

When the information you receive during buying a product is false.

Question 6

What is the definition of Unfair trading practices

Answer 6

A method of trading that is misleading or unfair.

Question 7

What is a raincheck?

Answer 7

When a company imports a good from elsewhere to sell at a sale price because they did not have enough in stock.

Question 8

What is puffery

Answer 8

When a company makes a claim that is so ridiculous that no one would believe them (Not illegal).

Question 9

Give 4 examples of misleading or deceptive conduct.

Answer 9

Advertisements not fully disclosing the full details of a 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/prizes without intention to supply them as advertised.

Bait advertising

Misleading claims

Pyramid schemes

Accepting payment without intention of supplying the goods.