Misleading Conduct and Trade Practices

This assignment delves into the world of trade practices, focusing on the theme of misleading conduct. It examines two separate cases - TPG Internet Pty Ltd. and Puxu - each with its unique circumstances and outcomes. The analysis highlights the importance of clear and accurate advertising, as well as the responsibility of companies to represent information ethically. The assignment emphasizes the need for businesses to follow rules and regulations under the Trade Practices Act 1974, in order to maintain effective relationships with customers and build trust.

INTRODUCTION TO
BUSINESS LAW

INTRODUCTION
Trade Practices Act 1974 consists various statutory provisions which are related to
framing of best advertisement for people 1. So that, through companies have to perform their
functions ethically. In present report, case law has been discussed that ACCC vs TPG internet
Pty Ltd. which consists several rules related to cited law.
QUESTION 1
Para 2
TPG internet Pty Ltd. Is providing communication services to large number of people in
Australian market in order to satisfying their needs and demand. Thus, entity is an internet as
well as telecommunication services for best quality for the purpose of protect their interest. This
company introduce services of ADSL2+ in attractive price. It must utilise home telephone line of
consumers through providing broadband internet connection with unlimited data. Australian
Competition and Consumer Commission (ACCC) lodge complaint against cited firm for
introduce false and misrepresentation services in advertisement campaign 2. As per advertise
company promise to charge less amount but in real it charges extra amount which is must higher
than the advertising amount. Furthermore, there are three types of problems identifying through
TPG's advertising which has been considered by ACCC are as aligned below-
 TPG introduce in its advertisement that it offers unlimited internet services along with
ADSL2+ for 29.99 dollars only.
 After use such services it has been found that company charges some extra amount which
are higher than their normal price.
 The internet pack which is provided to consumer are connected with their home
telephone for 30 dollars per month.
1 Corones, S. (2014). Australian Competition and Consumer Commission v. TPG
Interney Pty Ltd., Forrest v. Australian Securities and Investments Commission:
Misleading Conduct Arising from Public Statements: Establishing the Knowledge Base
of the Target Audience. Melb. UL Rev. 38. 281.
2 Corones, S. G. (2014). Misleading conduct arising from public statements: establishing
the knowledge base of the target audience. Melbourne University Law Review. 38(1).
281-315.
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 In order to use such services customers, have to pay extra 129 dollars’ installation fee for
the purpose to take telephone connection. Which means people needs to pay total 149.99
dollars rather than 29.99 dollars to TPG firm.
QUESTION 2
Para 9 and 10
The significant statutory provisions have been defined by legal authorities for the purpose
of maintain ethical as well as legal actions which are taken by companies. These rules can
control advertisement campaign within a limit 3. ACCC lodge complaint against TPG that firm
not able to provide services which it offers in its advertisement. It offers services at higher then
offered. Government introduce various types of rules, regulation and policies which h are
imposed on companies related to advertising services in Trade Practices Act of 1974. This law
restricts firms to perform ethically and not mentioned nay mislead information. There is some
statutory provision has been contravened by TPG under Trade Practices Act 1974 which are as
follows: S 52 – As per this act no firm can provide any type of mislead or misrepresentation in
their advertisement. In case they can do so then courts is able to imposed penalties of
those firms.
 S 53 – No firm can offered mislead information or data related to related to prices of
goods or services which entity can provide to consumers in international market.
QUESTION 3
Para 19
The Primary judge provide his final judgement against the TPG company that it offers
false information or data related to their services. Judges provide their decision in against TPG
internet Pty Ltd. on the basis of Trade Practices Act 1974 are as follows:
Bundling: Cited firm offered services in order to attract its targeted customers through
mentioned information in advertisements but was considered as mislead information. In this
advertisement company not explain charges of installation but only mentioned charges of
internet.
3 Lewis, G. (2013). Australia's regulatory panopticon. AQ-Australian Quarterly. 84(4).
26.
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Set-up fee: The TPG is also responsible to introduce installation charges in order to clear
its statement about providing of internet services in Australian market. There is also hidden cost
imposed on interest services which are used by large number of people.
Single price: According to section 53 (1) C of Trade Practices Act (1974) it has been
defined that primary judge found that the total price of such services are 149.99 dollars but6
company mentioned only 29.99 dollars.
QUESTION 4
Para 20 and 21 and 28
Primary judge as well as full court provide two different decisions related with providing
internet services to their targeted customers. Furthermore, full court take decision in favour of
TPG company that it not provide any mislead information but people are not able to under offer
which is mentioned under advertisement 4. Final concluded decisions are as aligned below-
 Judges of full court found that people only focus on some words rather than
checking the entire advertisement. TPG internet Pty Ltd delivered entire
information related to connection of telephone installation as well but customers
are failed to understand data. So that, people only focus on some areas and ignore
rest content.
 Court is also explained that services which are provided by company are offer
along with bundling. In that customers are bound to check bundling goods and
services with other internet services offered by cited firm.
QUESTION 5
Para 33, 34 and 35
The final judgement of High court has been presented in against of TPG firm. On the
other hand, decision of full court presents in favour of company. So that, there are further
reasons are mentioned for such different judgements are as aligned below:
 High court has been decided that the final decision of full court is not correct because
company introduce mislead information to people. On the other hand, other court
4 McKendrick, E & Liu, Q. (2015). Contract Law: Australian Edition. Palgrave
Macmillan.
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concluded that firm not provide any misrepresentation which present any wrong
information. So that, their decision is differ from each other.
 High court found that the further concept of bundling is not clear and considered as
misled as well.
QUESTION 6
Para 38 and 39
Courts found that Parkdale Custom Built Furniture v Puxu is not related with the case of
TPG internet Pty Ltd. Because such is related with the furniture and case of TPG is considered
with internet services. In case of Puxu judges has been concluded that customers must make sure
or satisfy with the quality of furniture before purchase the same. In case of TPG, company
engaged in business of providing internet services to people with attractive prices which is able
to attract people. It has been concluded that Puxu mislead consumer and TPG misrepresent the
information or data which is related with providing internet services 5.
QUESTION 7
Para 48, 49 and 50
As an employer of marketing section which provide internet services to people. I will
suggest that company needs to prepare clear and perfect advertisement along with proper and
exact information related to services which actually offered by firm in international market.
Entity have to offer price and services according to requirement of people and try to satisfy their
needs as well 6. As per rules of Trade Practices Act 1974 companies are bound to represent
information ethically which can clearly communicate to customers and provide clear message
them as well. At the time of defining information related to price than they also responsible to
mentioned bundling cost, installation charges and much more. Through which firms can able to
maintain effective relationship with their targeted customers and build trust on them as well.
While conducting such functions organizations are bound to follow further rules and regulation
which are mentioned under law.
5 Pearson, G. (2017). Further challenges for Australian consumer law. In Consumer Law
and Socioeconomic Development (pp. 287-305). Springer, Cham.
6 Steele, J & van Boom, W. (Eds.). (2011). Mass justice: challenges of representation and
distribution. Edward Elgar Publishing.
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CONCLUSION
From the above project, it is examined that judge of high court as well as full court
provide judgement related to advertisement. Also they give their final decision as per the rules of
Trade Practices Act 1974. Through companies needs to clearly mentioned data which are simple
and clear. Members of entity are bound to follow rules and regulation in order to attract large
number customers and increase them as well. The case TPG is different from case of Puxu so
that their judgement is also differ.
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