Legal Issues in Misleading Conduct: A Case Study of Rollinstone

FUNDAMENTALS OF LAW 0
FUNDAMENTALS OF LAW
<Your Name here>
<Course>
<Professor>
<Date Here>

FUNDAMENTALS OF LAW 1
Question one
Ordinarily when a builder contacts Rollinstone, the company sends a representative to
engage the builder regarding their electrical needs. Within 24 hours after the initial meeting,
Rollinstone will send the builder an email with a list of recommendations, prices, and the
estimate on the delivery date. After receiving the email, the client will then fill out the form
signs it and sends it via email. A hardcopy of the form together with payments receipts of the
deposit are sent by mail. The goods order is then filled and the work done by Rollinstone,
normally within one week of the builder’s request.
Legal issues
Across Australia, consumers are awarded similar protections whereas businesses are
tasked with similar responsibilities and obligations (The Australian Consumer law). Section
18 of Australian Consumer law states that people and businesses are forbidden from engaging
in conduct that would be construed as misleading or deceptive. Actions that are likely to be
interpreted as misleading include direct or express statements or representation, behaving in a
certain given manner, implied representation, remaining quiet regardless of a requirement to
disclose a certain relevant issue, or by omission which involves failing to act in a certain
manner. Misleading conduct lead to civil and criminal liability (Competition and Consumer
Act 2010 (the Act)).
Section 29 of the consumer law Covers false or misleading representations about the
supply or the possible of goods or services in regards to promotion (The Australian
Consumer Law). The false and misleading representation include the quality or standard of
the goods, claims that the goods are new, that a particular person has agreed to purchase the
goods or services, information purporting to be a testimonial by a given person, sponsorship,
approval, affiliation, the price of the goods, after sale services, place of origin, among others.

FUNDAMENTALS OF LAW 2
Chapter 2c covers false and misleading representation with special focus on the
wrongful acceptance of payments of goods where it is wrong for the company to accept
payment for goods and services where they do not intend or lacks the capacity to supply the
goods or where the trader intend to supply a different product or service. Bait advertising is
also prohibited whereby the trader leads the consumer to believe that a product or service will
be available at a certain price only to find out that the company lacks the required stock
(Australia Competion and Consumer Commission , 2018).
Australian Competition and Consumer Commission v TPG Internet Pty Ltd
TPG started a national campaign in different media outlets for the unlimited ADSL2+
and home phone bundle. The ACCC raised concerns with TPG that the campaign was
misleading and deceptive and in breach of the PTA. TPG recalled the campaign and replaced
the campaign with a revised one. The dominant message in the revised campaign was
‘unlimited ADSL2+ for 29.99$ monthly. However below it, written in fine print but with a
smaller font was the clarification that the price was only available when the ADSL2+ service
was bundled with a home phone rental for $30 monthly. ACCC argued that the dormant
message was likely to mislead target audience that the cost was $29.99 only whereas the
actual price was indeed $50.00.
The high court upheld the ruling of the first judge by overruling the ruling of the full
court. The ruling confirmed ACCC allegations that the advertisement was misleading and
deceptive and was in breach of the PTA. TPG were fined $2000, 000.
Application in the case law
The Australian Consumer Law (ACL) developed by the Australia’s consumer
protection agencies was meant to aid businesses understand their responsibilities towards
their consumers. Furthermore, ACL attempted to show businesses what was acceptable in