The Australian Consumer Law [Competition and Consumer Act 2010 (Cth) Schedule 2] expressly prohibits misleading or deceptive conduct in trade or commerce.
The section is widely used in all types of disputes relating to ‘trade or commerce’. This includes disputes between consumers and business and business to business. It is often relied upon in disputes between businesses where the terms of a contract limit possible remedies.
The conduct must be in trade or commerce. It includes conduct that is likely to mislead or deceive a person. Misleading conduct is conduct that leads a person into error. Deceptive conduct suggests intention to deceive, although intention is not relevant. The person misled or deceived does not need to prove loss or damage.
Consumer examples of misleading or deceptive conduct include:
Fines for corporations are the greater of $50,000,000, three times the value of the benefit received or 30% of adjusted turnover during the breach turnover period for the offence. Individuals may be fined up to $2,500,000.
Section 18 does not apply to private transactions. An example of a private transaction is the sale of a vehicle by one individual to another. If a person relies on a representation made by a seller that turns out to be untrue, the common law or Misrepresentation Act 1972 (SA) may provide a remedy.
Find more information about misrepresentation here.
|
Pursuant to the Australian Consumer Law, good and services are acquired by a consumer if:
[Australian Consumer Law s 3, Competition and Consumer Regulations 2010 (Cth) reg 77A.] A claim for loss or damage must be lodged within 6 years [s 236]. |
Misrepresentation Act 1972 (SA)
The Misrepresentation Act 1972 (SA) makes it an offence to induce another party into entering a contract by misrepresentation and provides for criminal sanctions to be imposed [s.4].
If a business makes a false representation inducing a consumer to enter a contract, to pay money, to transfer land or personal property then the trader and/or the agent or employee making the representation are both guilty of a criminal offence.
Maximum penalty:
What is a misrepresentation?
A misrepresentation is a false statement or intentional misstatement used to induce a person to enter into a contract.
Defences
Under s 4(3) the following defences apply to a prosecution for misrepresentation:
We embrace diversity and welcome all people, irrespective of culture, faith, sexual orientation and gender identity.
.png)
.jpg)
.jpg)
.jpg)
Legal Services acknowledges Aboriginal people as the Traditional Owners and ongoing occupants of the lands and waters in South Australia and we respect their spiritual, cultural and heritage beliefs. We recognise their continuing connection to land, water and community and pay our deep respect to Elders past and present.
.png)
.png)
