Consumer Law and Misleading Conduct

This assignment delves into the Australian Consumer Law, particularly focusing on Section 18 which prohibits misleading or deceptive conduct. It explores how companies must use accurate information in advertising and contracts to build trust with consumers. Case law is also examined to illustrate the application of these principles.

CONSUMER LAW

Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
(A) Elements of section 18 of misleading or deceptive conduct............................................1
(B) Applies section 18 on advertisement and pre-contractual negotiations...........................2
(C) Case law...........................................................................................................................2
PART 2............................................................................................................................................3
(A) Standard form of consumer contract................................................................................3
(B) Prohibition of unfair contract terms.................................................................................3
(C) Case law...........................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Consumer law is the legal term which can maintain effective relationship among customers
and companies. It consists several remedies in order to protect rights and interest of people.
Present law provides several rights to people in order to receive claim (Weatherill, 2013).
Business organizations not able to use misleading information in advertisement. Section 18 of
Australian Consumer Law is providing restriction to company that they are not able to so
misleading or deceptive conduct.
PART 1
(A) Elements of section 18 of misleading or deceptive conduct.
Section 18 of Australian Consumer Law has been considered as schedule 2 of the
Competition and Consumer Act, 2010. Such act imposed restriction of business organizations
which involve in trade and commerce not able to provide mislead or deceptive information to
customers. The primary aim of section 18 of act is to provide proper protection to consumers and
preventing them from companies from any misleading their customers. A variety of remedies of
consumers are available for protect their rights and interest at the time of misleading or deceptive
conduct by corporations. Misleading and deceptive conduct stated that companies mention
wrong information or data in their advertisements for attract customers (Benohr, 2013). Section
18 of ACL is able to establishes a statutory norm of manner that relates to business activity across
the economy. Misleading conduct can occur due to several reasons are as aligned below-
Comparative advertisement- Usually, companies mentioned characteristics of goods and
services offered by them in international market. But in some case they use promotional
statements that compare with other firm which provide same products and services to people. No
entity can caper its products and services with other firm. This process is considered as wrongful
act (Ayeh, Au and Law, 2013).
Representations- Thus, representations can be made under pre-contractual negotiations.
Update posts- Most of business organizations use social media platform in order to
promote their goods and services in effective manner. Usually, firms update wrong information
rather than correct data (Kolivos and Kuperman, 2012).
Additional disclaimer- When members of firm are conduct adding disclaimers in their
advertising materials that time company may use misleading or deceptive conduct.
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ELEMENTS OF MISLEADING CONDUCT
Engage in conduct- Section 18 of this act define several elements of misleading conduct.
So that. Engage in conduct is one of them. While advertising goods and services company may
use misleading information which is not beneficial for them (Howells and Weatherill, 2017).
Trade in commerce- At the time of conduct trade and commerce, firm may use some
misleading information in order to pretend that they selling best products and services in market.
So that, such situation create confusion among people (Ishak and Zabil, 2012).
(B) Applies section 18 on advertisement and pre-contractual negotiations.
Marketing and advertising- For the purpose of promote goods and services in
international market most of the companies use advertisement. They mention various features
and characteristics of products they offer to people. So that, if members of entity use misleading
information or data then it may create confusion among people (Ishak and Zabil, 2012). Also it
can reduce trust of customer. Advertisement is the best way to promote services but employers
must ensure that they use correct and authenticate data in order to provide related information to
them. Also companies are not able to compare their services with other firm (The Elements of
Misleading Conduct. 2017).
Pre-contractual negotiations- Business organizations have to mention actual information
or data related to their goods and services offer in market. They are not able to use data which is
irrelevant with actual data. Information related to pre-contractual negotiation is not able to
mention under advertisement (Ishak and Zabil, 2012). Through this they can misguide consumer
and reduce trust level as well. In case, company do so and failed to follow rules then legal
authorities may impose penalties on them equal to amount or imprisonment consists under law.
Furthermore, protection of human right is the best way to follow rules.
(C) Case law
There is an internet provide business organization offered ‘unlimited’ download plans to
large number of people who signed up to its internet services. Furthermore, the special plans
were subject to major boundaries consisting speed reductions at the time certain amount of data
was downloaded. The court or legal authorities has been found that the use of the term
‘unlimited’ related to internet plans that were subject to large number of limitations that were not
revealed was misleading as well as deceptive.
Above mentioned in real which is clearly stated misleading or deceptive conduct.
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PART 2
(A) Standard form of consumer contract.
Different types of laws protecting customers from several unfair terms and conditions in
situations where they have no opportunity in order to negotiate with companies, like with
standard form consumer contracts. Section 27 of Australian Consumer Law define some
factors which may contribute in maintain standard form of consumer contract. Such factors are
as aligned below-
Parties- In order to meet standard form of consumer contract, two or more parties are
required to form legal contract with each other.
Agreement- At the time of selling products companies may form legal contract with their
targeted customers (Ishak and Zabil, 2012). Members of firm are responsible to fulfil agreement
which is framed with people. This is the significant factor which may contribute in protect rights
and interest of people.
Rules- Every company is responsible to follow rules, regulation and policies which are
imposed on them as per the provision of law. Also they are responsible to provide best and
accurate information to customers in order to build trust among people.
(B) Prohibition of unfair contract terms.
The specified restriction on unfair agreement terms and conditions being comprised in
standard form of consumer contracts which is shortly apply to prohibit these terms or conditions
being involved under standard form contracts with most of the business organizations. Unfair
terms may create imbalance among rights and interest of parties which is mentioned under
provision of contract (Ishak and Zabil, 2012). Thus, prohibition on unfair contract terms which
may allow customers to make complaints against company in order to receive amount of
compensation which is specified under law.
(C) Case law
Case: George Mitchell Ltd v Finney Lock Seeds Ltd., in this case farmer positively lodge
complaints in contradiction of that a clause limiting the significant obligation of a person who act
as cabbage seed seller in present case in order to damages for additional seed, instead of the far
major loss of incomes after crop failure, was unacceptable.
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CONCLUSION
From above report it is concluded that, according to the rule of consumer law no company
can do misleading or deceptive conduct. Because it may cause reduce trust among people.
Members have to use correct and authenticate information in their advertisement for provide best
possible to data to them. At the time of selling the product entities frame legal agreement with
targeted customers. So that, as per the rule company have to provide best quality of products and
services. Concept of Section 18 of Australian Consumer Law is mentioned above report which
may restrict companies for not able to use misleading information or data.
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REFERENCES
Books and Journals
Ayeh, J.K., Au, N. and Law, R., 2013. Predicting the intention to use consumer-generated media
for travel planning. Tourism Management. 35. pp.132-143.
Benohr, I., 2013. EU consumer law and human rights. Oxford University Press.
Howells, G. and Weatherill, S., 2017. Consumer protection law. Routledge.
Ishak, S. and Zabil, N.F.M., 2012. Impact of consumer awareness and knowledge to consumer
effective behavior. Asian Social Science. 8(13). p.108.
Kolivos, E. and Kuperman, A., 2012. Consumer law: Web of lies-legal implications of
astroturfing. Keeping good companies. 64(1). p.38.
Weatherill, S., 2013. EU consumer law and policy. Edward Elgar Publishing.
Online
The Elements of Misleading Conduct. 2017. [Online]. Available through:
<https://legalvision.com.au/misleading-or-deceptive-conduct-what-you-need-to-know/>.
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