Fair Trading Act Flashcards
What is puffery?
Puffery is statements that are so ridiculous that no one would possibly believe them.
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:
- Misleading and deceptive conduct
- False representation
- Unfair practices
What is misleading or deceptive conduct?
You have been mislead if the information you receive about goods or services gives you a false interpretation.
What is False Interpretations?
When the information you receive about a good or service is not true.
What is unfair trading Practices.
An unfair practice is 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 to you at the special advertised price.
What does Cavet Emptor mean?
Let the buyer beware. The consumer has the responsibility to be wise and careful when choosing to buy a good or service.
3 examples of misleading or deceptive conduct.
- Advertisements misleading you about a product. Brass Bed heads are actually Brass Plated.
- A salesman not telling you about a good or service when you ask a question or statement. Does you car burn excessive oil?
- A false impression about a job you are applying for.
4 examples of false representation?
- Advertising 1 price but charging a higher one.
- Products labelled incorrectly- made in France label but made in Korea.
- No refund signs in shops.
- Failing to provide the service you state e.g city wide repairs.
Unfair trading practice examples.
- Offering prizes without intending to supply as stated.
- Bait advertising.
- Pyramid selling
- Taking money without intending to supply good or service.
