16.6.2 Fair transactions As a consumer, you might feel unsure when buying goods and services. You often depend on salespeople for help. You want to be sure they respect your needs and don’t try to take advantage of you. Australian Consumer Law aims to keep buying and selling fair for everyone. 16.6.3 Honesty is the best policy The Australian Consumer Law says sellers must be honest in advertising their products. It is illegal to mislead or trick customers into buying something. Here are some examples of illegal behaviour under this law. • Misleading or deceptive conduct: Advertisements can’t make false claims about products, like saying prices are low or items are ‘on special’. • Unconscionable conduct: This is any business conduct that is unfair or unreasonable. • Offering gifts and prizes in connection with the supply of goods and services and then not providing them . • Conduct that may mislead the public: An example is using a name like a famous brand or showing an Australian-made logo when the product is made overseas. • Bait advertising: This is when a store shows low prices to attract customers but has very few of those items. When they run out, customers are pushed to buy more expensive products. • Referral selling: This is when a business gives a special deal to a customer for bringing in new buyers who make a purchase.
SkillBuilder discussion Interpreting and analysing data and information 1. What is the special offer in the image? How would this affect your purchasing decisions? 2. What are some common types of special offers used by sellers in Australia? 3. How do Australians
FIGURE3 Any discounts, special offers or specials offered by sellers must be genuine.
typically respond to seasonal promotions and discounts offered by retailers?
16.6.4 Treating consumers fairly Consumers want to buy goods and services to meet their needs. This eagerness can be taken advantage of by dishonest sellers. Consumer law requires sellers to share all important information and ensures fair rights for both buyers and sellers. Here are some of these rights: • Any contract a consumer signs must be fair and easy to understand. It can’t let the seller change the rules without telling the buyer. For example, a mobile phone contract can’t let the company change prices without warning. Consumers should read contracts carefully to make sure they understand them.
TOPIC16 How markets work 567
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