misrepresentation & acl s18

7/25/2019 Misrepresentation & ACL S18

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Consumer ACL S3, A consumer is when goods is :1. $40,000 but or !erson"# or domestic us"ge.3. oods must not be used u! or tr"nsormed in tr"de or

commerce.

Misrepresentation

%e&nition: 'isre!resent"tion is " "#se st"tement o "ct m"deb( one !"rt( to "nother to enter into " contr"ct.)"s there " misre!resent"tion*

+o est"b#ish "n "ction o misre!resent"tion, " !"rt( must !roeth"t the re!resent"tion is:

1- s one o past or existing"ct, not "n o!inion.2- s "#se3- )"s made to the partymis#ed before or whenthe

contr"ct w"s m"de, "nd)"s intended to induce "nd h"s indeed induced the !"rt( intocontr"ct.

> Li"bi#it( c"nnot be "oided b( use o " disc#"imer "sest"b#ished in ACCC v Telstra Corporation GP (200! 2""A#$ "0

ProhibitingMisleadingandde%eptive%ondu%t&(GeneralProhibitions!

'ot limited

to %onsumer&Can beinterestedmembers ofpubli% andotherbusinessesin%luding%ompetitors&

ACLs1/

eeds 3 reuirements:)& *usiness has engaged in %ondu%t& nc#udes"cts, st"tements, !romises, "i#ure to do or s"(something.S#ience is considered. eno nestments 5 Co##ins'"rric6i#e.-7S#ience "bout rest"ur"nt #imit82& The %ondu%t was in trade or %ommer%e'ust be in commerci"# conte9t. %oes not coer!o#itic"# or "c"demic st"tements.

Concrete Constructions (NSW) Pty Ltd v Nelson10- where the "dise rom the orem"n in

concrete constructions w"s not " conduct

eng"ged in tr"de or commerce- Durant v Greiner 10- where reiner;s

st"tement w"s not m"de in tr"de or commerce

+&Misleading and de%eptive %ondu%tto #e"d "str"(; or to #e"d into error;, "nd deceie; isinter!reted "s to c"use to be#iee wh"t is "#se;.Su!!orted b(

- +"co com!"n( o Austr"#i" nc 5 +"co =e## t(Ltd 123- 42 AL? 1@@ where +CA w"s

eng"ging in mis#e"ding or dece!tie conduct o

br"nd "s += st"rted &rst.- ACCC owerb"##win.com."u + L+% 2010-

BCA 3@/, h"ing "#se "dertising to mis#e"d

consumers.- enderson 5 ioneer omes t( Ltd no 2-

1/0- 2 AL? @ "d " #ow wee6#(

re!"(ment r"te in " #"rge !rint but h"e " &ne

!rint s"(ing it #"st on#( 1 (e"r. 'is#e"ding-

oweer, D9"gger"tion is " orm o mis#e"ding ordece!tie conduct "s su!!orted b( ien 5 r(or


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monet"r(Su!!orted b( %irector o consumer "I"irs 5ictori" 5AA+ Limited 200F- 5CA+ 143 where the terms!ermitted AA+ to immedi"te#( termin"te the contr"ctis "n un"ir term.

,nfair Terms5xemptionsAC#

627 DJD'+GSACL H s2F st"tes th"t the un"ir contr"ct terms!roisions do not "!!#( to

E +erms th"t de&ne the m"in subect m"tter othe consumer cont"ct

E +erms th"t set the upfront pri%e payableunder contr"ct #"w

E +erms th"t "re reuired or e9!ress#( !ermittedb( the law of the %ommonwealth or stateor a territory.

Mis%& unfairpra%ti%es

AC# +8)

,nsoli%itedprodu%t 9produ%t sentto buyerwithout the

buyerhaving

S2 H m"6ing "#se or mis#e"ding re!resent"tions "bout goodsor servi%es t must not m"6e " "#se or mis#e"ding st"tement:

+h"t the goods "re o cert"in st"nd"rd, u"#it(, "#ue, gr"decom!osition st(#e or mode#.C"se: "rtne## 5 sh"r! Cor!or"tion o Austr"#i" t( Ltd, "number o "dertisement sh"r! "#se#( c#"im is "!!roed b(st"nd"rd "ssoci"tion o Austr"#i", which w"s " "#sere!resent"tion o good o !"rticu#"r st"nd"rd "nd were &ned$100,000.-

S30 E m"6ing "#se or mis#e"ding re!resent"tions "bout sale ofland

S31 H eng"ging in mis#e"ding conduct in re#"tion toemployment

S32 E oIering " reb"te, git, !riKe or other ree item withoutintending to !roide it, or without intending to !roide it withinre"son"b#e time

S33 H eng"ging in mis#e"ding conduct reg"rding the n"ture,m"nu"cturing !rocess, ch"r"cteristics, suit"bi#it( or !ur!ose

or u"ntit( o "n( goods

S34 E eng"ging in mis#e"ding conduct reg"rding the n"ture,m"nu"cturing !rocess, ch"r"cteristics, suit"bi#it( or !ur!oseor u"ntit( o "n( 6ervi%es

- Eg. For trip !roc"ure still states #$ days trip even a%tert"e trip is c"anged to a ## days trip

S3 H eng"ging in b"it "dertisingEg &no' t"at u 'ill run out o% stoc& soon u still lurecustoers into ur s"op so t"at '"en run out u can as& t"e

to !uy anot"er odel


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re1uested it(6+: to 6+/!

S3F H wrong#( "cce!ting !"(ment when un"b#e to su!!#( the!roduct

S3@ H m"6ing "#se or mis#e"ding re!resent"tions "bout the!ro&t"bi#it( or ris6 o " home business

S3 E sending unso#icited debit or credit c"rds

S40 H "sserting " right to !"(ment or unso#icited goods orserices

S43 H "sserting " right to !"(ment or un"uthoriKed entries or"dertisements

S44 H !"rtici!"tion or inducing someone to !"rtici!"te in "!(r"mid scheme

S4@ H su!!#(ing goods or serices with more th"n onedis!#"(ed !rice "nd not ch"rging the #ower !rice

S4/ H "i#ure to s!eci( " sing#e !rice eg, !rice inc#uding "##ch"rges, ees, t"9es, #eies, etc- or goods or series su!!#iedor !erson"# domestic or househo#d use or consum!tion

S4 H oIering " contingent reb"te, commission or other bene&tin return or " reerr"#

S0 H using !h(sic"# orce, h"r"ssment or coercion in re#"tionto the su!!#( o or !"(ment or goods, serices, or #"nd

Consumerguarantees 9;


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d- S"e, A% dur"b#eAs " re"son"b#e consumer u##( "cu"inted with the st"te "ndconditions o the goods wou#d reg"rd "s "cce!t"b#e h"ingreg"rd to the o##owing m"tters :

E +he n"ture o the goods

E +he !rice o the goodsE An( st"tements "bout the goodsE

?emedies or nonEcom!#i"nce with the gu"r"nteesde!end on whether the "i#ure to com!#( with theconsumer gu"r"ntee w"s " m"or "i#ureM "s de&ned in6270

ot m"or "i#ure, c"n remed( "i#ure or recoer "##re"son"b#e remed( cost or reect goods 62:/-

?ecoer d"m"ges rom oods or nonEcom!#i"nce withS4 gu"r"ntees "s to "cce!t"b#e u"#it( 62)-

6:: 9 a guarantee that goods are reasonably =t for anydis%losed purpose and for any purpose for whi%h the6,PP#35$ G,A$A'T556 T>AT T>5? A$5 $5A6


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S/ st"tes th"t " gu"r"ntee b( m"nu"cturer is to ensurere!"ir "ci#ities "nd s!"re !"rts or re"son"b#e !eriod "tersu!!#( o goods.

S E gu"r"ntee th"t m"nu"cturer "nd su!!#ier wi## com!#(

with "n( e9!ress w"rr"nties the( h"e gien

Consumerguarantees 9;


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O "Iected !ersonM m"( recoer d"m"ges rom m"nu"cturer igoods not o "cce!t"b#e u"#it(: s 2@11- -P orwhere goodsdon;t m"tch descri!tion: s 2@14-O %"m"ges "g"inst " m"nu"cturer or bre"ch o these

gu"r"ntees coer:"- "n( reduction in the "#ue o the goodsb-"n( #oss or d"m"ge th"t w"s re"son"b#( oresee"b#e or bre"cho the gu"r"ntee: s 2@2AIected !ersonM is:O " consumerO !erson who "cuires goodsrom the consumerO !erson who deries tit#e to the goodsthrough the consumer: s 21-D9c#usionsQmodi&c"tions to st"tutor( remedies "re 5G%: s 2@F'"nu"cturer #i"b#e to indemni( su!!#ier: s 2@4

A%tionAgainstmanufa%ture

rAgainst non8%omplian%e

S2@1 Consumer gu"r"ntee re#"ting to su!!#( o goods h"snot been com!#ied with, the consumer h"s the right to recoercom!ens"tion rom the m"nu"cturer. S2@1.

+he m"nu"cturer is not #i"b#e i the gu"r"ntee w"s notcom!#ied with on#( bec"use o " c"use inde!endent o hum"ncontro# th"t occurred "ter the goods #et the contro# o them"nu"cturer.

"Iected !ersonM m"( recoer d"m"ges rom m"nu"cturer igoods not o "cce!t"b#e u"#it(: s 2@11- -P orwhere goodsdon;t m"tch descri!tion: s 2@14-O %"m"ges "g"inst " m"nu"cturer or bre"ch o thesegu"r"ntees coer:"- "n( reduction in the "#ue o the goodsb-"n( #oss or d"m"ge th"t w"s re"son"b#( oresee"b#e or bre"cho the gu"r"ntee: s 2@2AIected !ersonM is:O " consumerO !erson who "cuires goodsrom the consumerO !erson who deries tit#e to the goodsthrough the consumer: s 21-D9c#usionsQmodi&c"tions to st"tutor( remedies "re 5G%: s 2@F'"nu"cturer #i"b#e to indemni( su!!#ier: s 2@4


8/13

Manufa%turer.s #iabilityfor Goodswith 6afety4efe%ts

'"nu"cturer #i"b#e:O to com!ens"te "n indiidu"# i goods su!!#ied b( it h"e

" s"et( deectM "nd the indiidu"# suIers inuries

bec"use o the deect: s )+O to de!endents o indiidu"# or #oss "s " resu#t o inuriesto or de"th o indiidu"# c"used b( " s"et( deect: s)+/

O or #oss o other goods ordin"ri#( "cuired or !erson"#,domestic or househo#d use (s )"0!or #oss o #"nd,bui#dings or &9tures "cuired or !ri"te use c"used b(the deectie goods ( s )")!

O oods h"e " s"et( deectM i their s"et( is not such"s !ersons gener"##( "re entit#ed to e9!ectM h"ingreg"rd to m"nner in which m"r6eted, !"c6"ging,instructions, w"rnings, etc: s /()!

O An( e9c#usion o #i"bi#it( is 5G%: s ):0

Country oforigin

S22 ACL re!resent"tion o countr( o origin.

oods must be subst"nti"##( tr"nsormed in Austr"#i" "nd moreth"n 0 R o the cost o !roduction w"s incurred in Austr"#i" tobe "b#e to s"( th"t the goods "re Austr"#i"n m"de.

6afety of%onsumergoods

roduct s"et( St"nd"rds "s to :

erorm"nce, com!osition, contents, m"nu"cture &nish

o goods

+esting o the goods

Borm "nd content o m"r6ing, w"rnings

'ust !roide goods th"t com!#( with re#e"nt !roduct s"et(st"nd"rds.="ns

i concern "bout s"et( or th"t the goods cou#d c"use

inur( then c"n !#"ce interim b"n which #"st or F0d"(s

"nd c"n be e9tended. C"n "#so im!ose !erm"nent b"n.

?ec"##sE i bre"ch o "boe two then goods c"n be subect to "

rec"##E business must rec"## the goodsE noti( the !ub#ic o the deect.E +e## the !ub#ic wh"t the business is going to do.E ?e!"ir , re!#"ce or !roide " reund or the goods.

S"et( w"rning noticesE ub#ish on the internet " notice th"t the goods "re under

inestig"tion.E business is "w"re th"t h"rm h"s be suIered through

the use o the goods then must inorm the minister.


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ConsumerGuarantees

A%tion against supplier of goods and servi%esot m"or "i#ure:onEcom!#i"nce is not " m"or "i#ure, the consumer c"nreuire the business to remed( the "i#ure with " re"son"b#etime ACL 22-.

+he business c"n remed( the nonEcom!#i"nce b( :Curing the deect in tit#e i "n(-,?e!"iring the goods,?e!#"cing the goods, orroiding " reund: ACL s2F1.'"or "i#ure:

+he consumer c"n reect the goods th"t is, return he goods or" reund or re!#"cement or reuire the business to !"( to theconsumer the diIerence between the "#ue o the goods "ndthe !rice !"id or them: ACL S23-B"i#ure to com!#( with " gu"r"ntee is m"or "i#ure i :

+he goods "re not o "cce!t"b#e u"#it( bec"use the( "re

uns"e: ACL S2F0.

+he consumer #oses the right to reect the goods "ter returnthe goods or reund or re!#"cement i

+he reection !eriod or good h"s ended the goods h"s been#ost destro(ed or dis!osed o b( consumer or the goods wered"m"ged "ter being de#iered to consumer or re"sons notre#"ted to their st"te or condition "t the time o su!!#(.

+he goods h"e been "tt"ched to "n( re"# !ro!ert( "nd the(c"nnot be det"ched or iso#e"ted without d"m"ging them: ACLS2F2.

consumer "cuires goods rom " su!!#ier "nd gies them to"nother !erson "s " git, the other !erson c"n e9ercise "n(rights or remedies with wou#d be ""i#"b#e i the( "cuired thegoods rom the su!!#ier: ACL S2FF.Simi#"r roisions "!!#( to "n "ction "g"inst " su!!#ier oserices: ACL SS2F@E2@0

ConsumerGuaranteesummary

3f not maor ;ailure B62:/(2!E consumer m"( reuire su!!#ier to remed( the "i#ure within "re"son"b#e timeP i su!!#ier does not remed( the "i#ure,consumer m"( reect the goods or recoer "## re"son"b#e costs

in remed(ing the "i#ure: s2:/(2!3f Bmaor failure o%%ursE consumer m"( reect goods or recoer com!ens"tion or "n(reduction in "#ue o goods be#ow the !rice !"id: s 2:/(+!!

O n either c"se, consumer m"( recoer d"m"ges or "n(re"son"b#( oresee"b#e #oss or d"m"ge c"used b( nonEcom!#i"nce: s 2:/("!

O Simi#"r remedies "!!#( or bre"ch o sericesgu"r"ntees: s 27

O D9c#usions o st"tutor( remedies "re oid: s7"

BMaor failureD s 270 for goods and s 27 for servi%es

A m"or "i#ureM occurs where goodsQserices:


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wou#d not h"e been a%1uired by a reasonable %onsumerwho was fully a%1uainted with the nature and extent ofthe failure

E "re subst"nti"##( un&t or " !ur!ose or which

goodsQserices o the s"me 6ind "re common#( su!!#ied"nd the( c"nnot be e"si#( "nd within " re"son"b#e time

be remedied to m"6e them &t or such " !ur!oseE "re un&t or " disc#osed !ur!oseE "re not o "cce!t"b#e u"#it( bec"use the( "re uns"e

Conse1uen%es andremedies

Consumers h"rmed m"( t"6e #eg"# "ction "nd see6 #eg"#remedies inc#uding :

1- ecuni"r( !en"#ties H ss224E2312- nunction E ss232E233- %"m"ges H s23F

4- Com!ens"tion order or inured !ersons H ss23@E241%ec#"r"tion th"t the contr"ct is oid, order to reund, re!"ir orcom!ens"te.

?emedies c"n be gr"nted b( " court or contr"ention o theACL inc#ude:

E onE!unitie orders inc#uding orders directing the

deend"nt to !erorm " communit( serice, directing

them to est"b#ish com!#i"nce "nd educ"tion !rogr"ms

or their em!#o(ees, reuiring them to disc#ose

inorm"tion or reuiring them to !#"ce "n

"dertisement.E An "derse !ub#icit( order "ndE An order disu"#i(ing " !erson rom m"n"ging "

cor!or"tion.

not " m"or "i#ureE consumer m"( reuire su!!#ier to remed( the "i#ure within "re"son"b#e timeP i su!!#ier does not remed( the "i#ure,consumer m"( reect the goods or recoer "## re"son"b#e costsin remed(ing the "i#ure: s 22-O i " m"or "i#ureM occurs:E consumer m"( reect goods or

reco"cer com!ens"tion or "n(reduction in "#ue o goods be#ow the !rice !"id: s 23--

O n either c"se, consumer m"( recoer d"m"ges or "n(re"son"b#( oresee"b#e #oss or d"m"ge c"used b( nonEcom!#i"nce: s 24-


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ACL S1: Dng"ging in mis#e"ding conduct "s to the n"ture ogoods.ACL S1F: Dng"ging in mis#e"ding conduct "s to the n"ture oserices.ACL S1@ : Dng"ging in ="it Adertising.

AC# S1/ : )rong#( "cce!ting !"(ment without intending tosu!!#( or without intending to su!!#( within " re"son"b#e time.ACL S 1 : '"6ing mis#e"ding re!resent"tions "bout thebusiness "ctiities th"t c"n be c"rried on rom home.


12/13

45;5'C56 ACL "rt 4E1 sets out the deences ""i#"b#e to " business"ccused o contr"ening these !rohibitions "nd committingthese oIences.A business wi## not be #i"b#e i :

+he contr"ention w"s c"used b( " re"son"b#e mist"6e o "ct,

inc#uding " mist"6e o "ct c"used b( re"ons"b#e re#i"nce b(the business on inorm"tion su!!#ied b( "nother !erson. : ACL20@.

+he contr"ention w"s due to the "ct o de"u#t o "nother!erson, to "n "ccident or to some other c"use be(ond thecontro# o the business "nd the business too6 re"son"b#e!rec"utions "nd e9ercised due to di#igence to "oid thecontr"ention ACL 20/.n re#"tion to contr"ention commited b( the !ub#ic"tion o "n"dertisement, it is " deence i the business c"n est"b#ish th"tits business is to !ub#ish "dertisements "nd th"t it receiedthe "dertisement or !ub#ic"tions in the ordin"r( course o

business "nd did not 6now "nd h"d no re"son to sus!ect th"tits !ub#ic"tion wou#d "mount to " contr"ention ACL 20

5nfor%ementandremedies

DnorcementDnorce"b#e undert"6ings " business sus!ects th"t it might h"e contr"ened the ACL,the business c"n oIer the ACCC "n undert"6ing th"t it wi## notdo it "g"in "nd t"6e ste!s to im!roe com!#i"nce. it is"cce!ted b( the ACCC the undert"6ing is courtEenorce"b#e.ACL SS21/

Subst"nti"tion notices+he ACCC c"n issue " subst"nti"tion notice to " businesssee6ing inorm"tion "bout c#"ims m"de b( the business in them"r6et!#"ce to determine i the( "re genuine "nd whetherurther inestig"tion is necess"r(. ACL ss21E22

ub#ic )"rning otices+he ACCC c"n issue " !ub#ic w"rning notice "bout " businesswhere the regu#"tor h"s re"son"b#e grounds to sus!ect th"tthe business h"s contr"ened the ""c#, or h"s reused or "i#edto res!ond to " subst"nti"tion notice ACL 223

Leg"# ActionA consumer or "n( other !erson h"rmed "s " resu#t o "contr"ention o the ACL b( the business c"n commence "#eg"# "ction "g"inst the business see6ing one or more o theremedies be#ow. An "ction c"n "#so be brought b( the ACCC.

General $emediesACL !"rt E2 sets out the remedies th"t c"n be gr"nted b( "court or contr"ention o the ACL. +hese remedies inc#ude:

E 5"rious !ecuni"r( th"t is, monet"r(- !en"#ties: ACL ss

224E31,E 5"rious t(!es o inunction ACL ss 232EP

E An order th"t the business !"( d"m"ges to "n( !ersonwho h"s suIered #oss bec"use o the contr"ention ACL


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S23F.E A com!ens"tion order or inured !ersons on

"!!#ic"tion b( either the inured !erson or the ACCC- or

nonE!"rt( consumers on "!!#ic"tion b( the ACCC-. ACL

SS 23@E41

E An order dec#"ring " contr"ct oid, "r(ing " contr"ct,reusing to enorce " contr"ct, ordering " reund,

ordering com!ens"tion, ordering re!"ir o the goods,

ordering the !roision o serices or ordering e9ecution

o "n instrument re#"ting to #"nd. ACL S243E 5"rious nonE !unitie orders inc#uding "n order directing

the business to !erorm " communit( serice, "n order

directing the business to est"b#ish com!#i"nce "nd

educ"tion !rogr"ms or its em!#o(ees, "n order

reuiring the business to disc#ose inorm"tion, "nd "n

order reuiring the business to !#"ce "n "dertisement:

ACL S24F.E An "derse !ub#icit( Grder ACL S24@ "ndE An order disu"#i(ing " !erson rom m"n"ging "

cor!or"tion ACL S24/.

misrepresentation & acl s18

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