Please enable JavaScript.
Coggle requires JavaScript to display documents.
BTF1010 Week 7 Lecture - Misleading or Deceptive Conduct and False…
BTF1010 Week 7 Lecture - Misleading or Deceptive Conduct and False Representation
Overview – Expectations for Business Behaviour in the ACL.
s 18 (BROAD) - misleading or deceptive conduct; and...
s 29 (NARROW) - specific false or misleading representations about goods or services.
s18 often covers s29
Misleading or Deceptive Conduct - s 18 (p.450).
As a general rule, a business must ensure that its conduct and statements are not false and not likely to mislead.
Examples of Legal Actions for breach of s 18
ACCC v Business/Individual
Advertising or marketing
Business v Business
Competitor vs competitor (products)
Individual v Business
Pre-contractual Negotiations
Individual v individual
s18 - 'A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is lkely to mislead or deceive.'
'Engage'
Passing on information = not engaged
Clear = engaged
'Misleading or deceptive' or 'likely'
No one need actually have been misled
Fault or intent is not necessary.
Statement about the future.
Marketing and Advertising - Sales Puff
Reasonable person wouldn't take seriously and would not be mislead.
Business Competitors
Business takes action against competitor to prevent dishonest or unfair advantage.
Contractual Negotiations.
Misleading or deceptive conduct during pre-contractual negotiations induces party to enter a contract
Remedies
May recover the amount of loss or damage caused by the misleading conduct.
If company in breach of s 18, individuals/employees “knowingly involved” can also be held liable for damages.
Specific False or Misleading Representations - s 29 (p.456).
s29: A person must not, in trade or commerce, in connection with the supply or possible supply of goods or services or in connection with the promotion by any means of the supply or use of goods or services'
Remedies
Injunctions: s232
Damages: s 236
Other orders: s 237
Generally – breaches of s 29 attract negative media publicity and damage the reputation of the business, especially when penalties are imposed. Breaches of s 18 also attract negative publicity.