Fair Trading Act Flashcards
What does the Fair Trading Act cover?
The Fair Trading Act covers all advertising and selling of goods and services by people in trade
What does the Fair Trading Act not cover?
It does not cover private sales
What does the Fair Trading Act prohibit?
The Act prohibits:
o Misleading and deceptive conduct
o False representation
o Unfair practices
What is the definition of misleading or deceptive conduct?
The information you receive about goods or services gives you a false impression
What is the definition of False representation?
The information you receive about goods or services is not true
What is the definition of Unfair trading practices?
A selling method which is misleading or unfair
What is a Raincheck?
A retailer can offer you a Raincheck. 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 at the advertised price
What is Puffery?
Puffery is statements that are so ridiculous that no one could possibly believe them
What are three examples of misleading or deceptive conduct?
o Advertisements not fully disclosing full details of goods or services
o Not telling you something when you ask them and they know the answer
o Giving a false impression about a good or service by the advertisement
What are three examples of False representations?
o False labels
o No refund signs
o Promises that will not be kept
What are three examples of unfair trading practices?
o Offering gifts or prizes without intending to supply them
o Bait advertising
o Misleading claims
o Pyramid schemes
o Accepting payment without intention of supplying the goods
