Misleading and deceptive conduct is a critical component of Australian Consumer Law. The prohibition against misleading and deceptive conduct is designed to ensure fair trading practices. It protects consumers and businesses from false or misleading representations.
This article was was written by our competition and consumer lawyer. We explore the legal frameworks governing misleading and deceptive conduct in Australia and key court cases.
The Australian Consumer Law (ACL) is outlined in Schedule 2 of the Competition and Consumer Act 2010. It serves as the cornerstone for consumer protection in Australia.
Complementing the ACL are the State and Territory fair trading acts, which reinforce consumer protections at the local level.
This landmark case set important precedents in determining what constitutes misleading conduct. In particular, the High Court:
This case highlighted the importance of clarity in advertising. In particular, the High Court:
This case examined liability concerning misleading advertisements in the digital space. In particular, the High Court:
Misleading and deceptive conduct provisions have far-reaching impacts on Australian businesses. Firms are required to exercise vigilance in their marketing and sales practices to ensure representations are truthful and complete. Failure to adhere to these principles can result in significant financial penalties, reputational damage, and a loss of consumer trust.
Businesses must exercise due diligence to ensure all commercial representations are accurate and not misleading. To avoid conduct that is misleading and deceptive, Australian businesses should ensure that:
Failure to comply with the ACL can result in severe consequences. The consequences of breaching the ACL include:
Consumers are empowered under the ACL to make informed decisions. The prohibition against misleading and deceptive conduct offers protection against false representations that could impact their purchasing decisions.
Consumers are empowered to take action against businesses that engage in misleading practices. Remedies are available to consumers such as cancelling the contract or receiving compensation for loss they suffer.
Consumers can take action such as:
Any action or statement that leads, or is likely to lead, a reasonable person into error is considered misleading or deceptive. This includes false representations, exaggerated claims, or omitting important information
No, under Section 18 of the ACL, intent is not a required element. Even unintentional conduct can be deemed misleading if it has the effect or potential effect of deceiving someone.
Disclaimers can mitigate liability only if they are clear, prominent, and effectively correct any misleading impressions. Hidden or unclear disclaimers are insufficient.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For advice tailored to your specific situation, please consult a qualified legal professional.
Contact us for a free consultation
We provide legal advice to business and individuals across Australia, no matter which State or Territory you are located. Our easy-to-access, online legal services mean that you can talk to our lawyers wherever you are, at a time that suits you.
4.8
Google Reviews
Don’t hesitate – reach out for your free legal assistance today. Your peace of mind is just a click or call away!
The concept of “Substantially Lessening Competition” is a test used to determine whether certain conduct breaches competition laws in Australia. Substantially lessening competition refers to conduct that negatively impacts competition
