Trade practices

1. Trade practices Liam Jemima Dhanush Tom

2. 1974 act • Definition -To protect both consumers and business and applies to virtually all businesses in Australia, including the commercial activities.

3. Functions of the Act • First function-protect consumers from deceptive practices that they may face from businesses e.g. false advertising or misleading information of products also focuses on safety concerns as well as warranties • Second function- regulate trade practices that may restrict competition that could affect price and quality of goods.

4. Breaching the act • Penalties up to 10 million for companies and $500,000 for individuals

5. Glossary Terms • Unconscionable conduct: Concept which creates enforceable rights both in general law and under the Australian Consumer Laws. • Bait Advertising: Manipulating consumers through sales, by advertising unavailable products and substituting with a more expensive good • Referral Selling: Acquiring new customers who are suggested or referred to by existing customers • False Representation: Manipulate consumers through consumers through incorrect advertising or business practices

6. Questions • Explain TWO functions of the trade practices act 1974? (4 Marks) • Analyze the effectiveness of TWO measures in place to protect consumers ( 6 Marks)

7. Questions with Answers • Assess the effectiveness of TWO measures that protect consumers ( 6 Marks) • The two measures protect consumers against misleading or deceptive conduct which is defined as practices which manipulate the consumer into buying certain goods or services. Furthermore, Bait advertising through misleading sales which leads the consumer into purchasing a more expensive product. The enforcement of deceptive or misleading contact varies in effectiveness as it is exceptionally challenging to police these laws due to the number of businesses that exist both online and in brick and mortar.