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Report on Australian Marketing Law

   

Added on  2020-05-08

6 Pages1070 Words53 Views
Running Head: AUSTRALIAN MARKETING LAWAustralian marketing lawName of the StudentName of the UniversityAuthor Note
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1AUSTRALIAN MARKETING LAWFactsJohnson Chemicals Ltd. has developed a new weed spray which he wants to manufactureand sell to the public. There are other competitors in the market who are dealing in similarproducts and aim to manufacture and sell these products in the market. The companies aresituated in Australia and hence are governed by the Australian Consumer and Competition Act,2010. The Australian Consumer and Competition Act read with the Australian Consumer Lawmandate that a company or a seller of any product shall be governed by the rules of the fair tradepractices norms1.FAIR TRADINGAll products sold in the Australian market are governed by the Australian Consumer andCompetition Act and the Australian Consumer Law. The basic premise of these acts is to ensurethat there is no unfair competition in the market and fair trade practices are maintained. Allsellers or producers of goods are obligated to be guided by the fair trading standards and anyviolation of the same shall be penalized. Queensland Co-operative Milling Association Ltd2is alandmark judgment that deals with fair market and competition in the market. The case isimportant because the Australian Tribunal acknowledged for the very first time that in cases ofsimilar products in the market, there shall be rivalry. This case defined the scope of market andcompetition. The tribunal said that whenever two products are competing in the market, thereshall be price flexibility and the rivalry shall be independent of the market forces and it shouldexist without any consideration to the price-product packaging3. MISUSE OF MARKET POSIITON1 Corones, Stephen G. Competition law in Australia. Thomson Reuters Australia, Limited, 2014.2 [1976] 25 FLR 169.3 Whish, Richard, and David Bailey. Competition law. Oxford University Press, USA, 2015.
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2AUSTRALIAN MARKETING LAWThe Tribunal has also concluded that whenever a product has entered a market knowingwell that there are competitors in the same market, he shall not take undue advantage of hismarket position4. By undue advantage, it means, that the seller shall not abuse his marketposition that he has achieved by being the same market. Section 46 talks in detail about themisuse of market power by any corporation. If it can be seen that a producer has a significantdegree of market power and is using that market power to gain unfair advantage in the market, oris acting in violation of Competition Act, he shall be said to be acting in violation of ConsumerAct. A seller is said to be abusing his market power if it can be seen that he is taking undueadvantage of his market power. The seller shall not deal in predatory pricing and shall not attachexclusive dealing in his contract5. UNFAIR TRADE PRACTICESSection 18 of the Australian Consumer Law talks about prohibition of unfair tradepractices. This section specifically governs unfair trade practices and conduct which aremisleading or defective in nature6. S.18 is a negative clause that prevents or restricts any personfrom indulging in trade activity that will lead to unfairness or buyers will be mislead into buyinga product. Seller’s duties are inclusive of trust and if a seller by his conduct misleads anyone intobelieving that his product is of highest quality, he shall be penalized as that leads to unfair tradepractices. If it is seen that a buyer is duped into trusting the quality of the product and as a resultof the deceptive words of the seller buys products to see they are misleading, he shall have theright to sue the seller7. 4Forsyth, Peter.Competition versus Predation in aviation markets: a survey of experience in North America,Europe and Australia. Routledge, 2018.5Kaplow, Louis. "Recoupment and Predatory Pricing Analysis." (2016).6Dunne, Niamh.Competition Law and Economic Regulation. Cambridge University Press, 2015.7Janssen, André. Information rights and obligations: a challenge for party autonomy and transactional fairness.Routledge, 2017.
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