Australian Consumer Law Overview

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Questions and Answers

Which section prohibits making false statements about the standard or quality of goods?

s 29 (correct)

s 39

s 32

s 36

What does section 33 address regarding consumer protection?

Accepting payments for goods

Misleading conduct about the suitability of services (correct)

Sending unsolicited goods

Bait advertising practices

Under which section is the act of offering gifts or prizes without intention prohibited?

s 39

s 36

s 32 (correct)

s 40

What practice does section 35 specifically regulate?

False advertising of goods' prices Signup and view all the answers

Which section prohibits sending unsolicited credit or debit cards?

s 39 Signup and view all the answers

What does section 36 say about accepting payment for goods?

Payments cannot be accepted if goods differ significantly from what was paid for Signup and view all the answers

What is prohibited under section 40 regarding unsolicited goods?

Sending goods without prior consent Signup and view all the answers

What may result from breaches of the prohibitions set out in the ACL?

Penalties imposed on the business Signup and view all the answers

What happens to a person who receives unsolicited goods?

They are not liable for the goods unless they destroy them. Signup and view all the answers

Which practice is explicitly prohibited under section 50?

Use of coercion or undue harassment Signup and view all the answers

When is a dealer allowed to call consumers to negotiate an unsolicited agreement?

During the day, but not on holidays. Signup and view all the answers

What must a dealer do before negotiating an unsolicited consumer agreement?

Clearly advise the consumer of their intentions. Signup and view all the answers

What is required if a consumer enters into an unsolicited consumer agreement?

They should receive a copy of the agreement with all terms. Signup and view all the answers

How long does a consumer typically have to terminate an unsolicited consumer agreement?

10 business days. Signup and view all the answers

What type of schemes are considered illegal as per section 45?

Pyramid schemes. Signup and view all the answers

What is the consequence for a sender of unsolicited goods after three months?

They lose the right to recover the goods. Signup and view all the answers

Study Notes

Unfair Business Practices Overview

The Australian Consumer Law (ACL) identifies and prohibits specific business practices that operate unfairly on consumers.
Penalties can be imposed for breaching these prohibitions.

### False or Misleading Statements

Section 29 of the ACL prohibits making false statements about goods or services in trade or commerce.
This includes false representations about the standard, quality, value, grade, composition, style, or model of goods.

Misleading Conduct

Sections 33 and 34 of the ACL prohibit conduct likely to mislead the public about the nature, characteristics, suitability for purpose, or quantity of goods or services.

### Offering Gifts or Prizes

Section 32 of the ACL prohibits offering gifts or prizes without the intention of providing them, either at all or within a reasonable time.

Bait Advertising

Section 35 of the ACL prohibits advertising goods or services at specified prices if the supplier has reasonable grounds to believe they cannot supply those goods or services for a reasonable period of time and in reasonable quantities.

Wrongly Accepting Payment for Goods

Section 36 of the ACL prohibits accepting payment for goods or services when the supplier:
- Does not intend to supply them at all or intends to supply something materially different.
- Has reasonable grounds to believe the goods or services cannot be supplied within the agreed time or a reasonable time.

Unsolicited Cards

Section 39 of the ACL prohibits sending credit or debit cards to another person unless the card was requested in writing or is replacing a card previously sent pursuant to a written request.

Unsolicited Goods

Section 40 of the ACL prohibits demanding payment for unsolicited goods or services.
The recipient of unsolicited goods is not liable for payment, nor are they liable for any loss or damage to those goods unless the loss or damage results from a wilful and unlawful act by the recipient.
The sender loses the right to recover unsolicited goods three months after delivery.

Harassment or Coercion

Section 50 of the ACL prohibits the use of physical force, coercion, or undue harassment in connection with the potential supply of goods or services or interests in land.

Pyramid Schemes

Section 45 of the ACL prohibits pyramid schemes.
Pyramid schemes involve a person joining the scheme and providing a benefit to other participants, expecting to receive a benefit when new people join.

Unsolicited Consumer Agreements

The ACL regulates unsolicited marketing, including phone calls and home visits.
Section 73 prohibits dealers from contacting consumers to negotiate an unsolicited consumer agreement on Sundays, public holidays, before 9 am or after 5 pm on Saturdays, or before 9 am or after 6 pm on weekdays.
Section 74 requires dealers to:
- Clearly advise consumers of their intent to sell something before negotiating a contract.
- Advise consumers of their right to ask the dealer to leave.
- Provide full details of their identity.
Section 75 requires dealers to comply with any request to leave the premises.
Section 78 requires a copy of any unsolicited consumer agreement to be given to the consumer, containing all the terms of the agreement.
Section 82 gives consumers who have entered into an unsolicited consumer agreement the right to terminate the agreement within specified periods (ordinarily, 10 business days).

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Description

Explore the key aspects of the Australian Consumer Law (ACL) and its prohibitions on unfair business practices. This quiz covers false statements, misleading conduct, the offering of gifts, and bait advertising. Test your knowledge on how these laws protect consumers.