Friday, December 6, 2019

Law Australian Consumer Law

Question: Discuss about the Lawfor Australian Consumer Law. Answer: Introduction: There are number of Australian businesses which are using the method of advertising for the purpose of promoting their goods and services. There are many methods of advertisement such as through television, radio, internet or print media, and while advertising through these modes it is necessary that companies ensure that their advertising complies with the law[1]. In this paper we state the marketing law issues related to advertising and selling. Subsequently, this paper is concluded with brief conclusion. Legal Issues Relating to Selling and Advertising: In Australia, there is national law named as Australian Consumer Law (ACL), and the main aim of this law is to protect customers and ensure fair trading in Australia. ACL is the part of the Competition and Consumer Act 2010 (the Act). Now a day, both advertising and selling practices are increasing rapidly, and now businesses are not only depend on television and print media, but advertising practices are widely spread in online environment through the way of E-mails, social media apps, online shopping sites, sites which compare the price, and review platforms. Businesses that advertise through online mode are under same responsibilities and obligations which are imposed on traditional modes. Therefore, it is necessary that business organizations must comply with the Act while advertising their goods and services. Fair selling and advertising practices related to goods and services result in consumer satisfaction and growth in business. The rights and obligation stated in the ACL ens ure whether business organizations are conducting their practices in fair manner or not[2]. In the present case, organization is developing program for the purpose of marketing the novel related to fitness program with state of the equipment of art gym, and it also coupled with personalized fitness training for those customers who are home-based. Following are some legal issues which company must address before advertising and selling their novel: There are two fundamental rules of advertising and selling that are business organization must not engage in any such conduct which is misleading or deceptive and business organization must not make misleading claims or statements. Generally, in practice both the rules overlap each other, and one particular statement can breach both the rules. In this paper we discuss the two rules, and it must be noted that similar law applies equally in those cases in which business organizations are advertising their products in online environment. Business that promote their goods and services through online mode must ensure that their online ways does not create any kind of misleading impression on customers and it also not include any false claims[3]. Misleading or deceptive conduct- it is illegal for business organizations to engage in any type of mislead or deceptive conduct or mislead or deceive consumers or other business. This law applied even when intention of organization is not to mislead or deceive anyone or no person or business suffered any loss or damage because of your conduct[4]. False or Misleading Claims- prohibition related to mislead or deceptive conduct also include prohibition on false or misleading claims. In other words, it is not lawful to make false or misleading statements by business organizations related to their goods and services. Misrepresentation stands for false or misleading claim and statement made by one party to another party, and it also includes those statements that organization made through television or radio, catalogues, labels, websites, contracts or during the period of contract negotiations, telephone, letters or emails or in person. For the purpose of deciding whether claim made by organization is false or misleading, Court considers the circumstances in which it is made. Therefore, it is necessary that organization does not make any false or misleading statements related to their goods and services such as goods are of particular standards, quality quantity, mode, value etc. there are some rules which deals with the false and misleading statements made by organization in case of providing services. Section 29 of the Act states various statements and claims which are considered as false or misleading statement[5]. This can be understand through real case study that is Federal Court of Australia[2007] FCA 1990, in which Federal Court stated that false or misleading statements are made by car manufacturers related to one of its vehicles. As per manufacturer vehicle includes 7 seats but in actual only five seats are there, and manufacturer also represented that drive way price of vehicle was $79 990 but in actual customers has to pay extra charges for delivery, statutory charges, and additional cost for two extra seats[6]. There is one more requirement that is genuine online reviews, which state that online reviews provide information to the consumer related to goods and services and these reviews are clearly based on the experience of other consumers. Reviews related to products are available on the site of business organizations, social media, and review platforms[7]. Conclusion: Therefore, it is necessary for business organizations to consider these two fundamental rules while conducting advertising and selling practices related to goods and services, and it is also necessary that business does not involve in any misleading or deceptive conduct while performing their business in organization. References: ACCC, Advertising promoting your business,, Accessed on 9th April 2017. ACCC, Advertising and selling guide, (2014),, Accessed on 9th April 2017. ACCC, False or misleading statements,, Accessed on 9th April 2017. ACCC, Managing online reviews,, Accessed on 9th April 2017. Australian Government, Business,, (2016), Accessed on 9th April 2017. Federal Court of Australia[2007] FCA 1990. Marketing Minds, Australian Consumer Law and Marketing Communications,, Accessed on 9th April 2017. 7

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