Misleading Conduct in Trade: ACL Section 18

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Questions and Answers

What was the outcome of the McWilliams Wines v McDonald’s case regarding the use of 'Big Mac'?

The conduct was not misleading or deceptive. (correct)

The conduct was found misleading and deceptive.

The case resulted in a settlement against McDonald’s.

McDonald’s was required to change its branding.

In the ACCC v TPG case, why was the advertising deemed misleading?

The fine print contradicted the dominant message. (correct)

The promotional material was poorly designed.

Consumers were not aware of the brand.

Limited availability was not disclosed.

What did the ACCC allege about Coles' in-store signs concerning their bread products?

That they misrepresented the origin of the wheat.

That they suggested a higher nutritional value.

That they led consumers to believe the bread was freshly baked that day. (correct)

That they indicated gluten-free options were available.

What distinguishes the product categories in the McWilliams Wines v McDonald’s case?

Wine and fast food are fundamentally different products. Signup and view all the answers

What was the primary concern in the ACCC v Coles Supermarkets regarding consumer behavior?

Consumers pay little attention to product signs. Signup and view all the answers

Which legal principle was reinforced in the ACCC v TPG case?

All promotional messages must be clear and not misleading. Signup and view all the answers

How did the court evaluate consumer interpretation in the Coles case?

Consumers are likely to interpret signs as indicating freshness. Signup and view all the answers

What is a key takeaway regarding disclaimers from the TPG case?

Disclaimers must not undermine the primary promotional message. Signup and view all the answers

What does Section 18 of the consumer law prohibit?

Engaging in conduct that misleads or deceives Signup and view all the answers

In the case of Concrete Constructions (NSW) Pty Ltd v Nelson, what was the key issue regarding the misleading statement?

Whether the statement was made in a commercial context Signup and view all the answers

What criterion is used to assess if conduct is misleading according to consumer law?

The nature of the communication and its audience Signup and view all the answers

What was the outcome of McWilliam’s Wines v McDonald's System of Australia concerning the use of the name 'Big Mac'?

The court found misleading conduct due to branding confusion Signup and view all the answers

What does the term 'in trade or commerce' specifically refer to in the context of misleading conduct?

Conduct with a commercial character Signup and view all the answers

Which of the following statements is true regarding internal communications between employees in the context of misleading conduct?

They do not occur 'in trade or commerce' Signup and view all the answers

Which case highlighted the issue of misleading conduct in advertisements for a product?

McWilliam’s Wines v McDonald's System of Australia Signup and view all the answers

When evaluating whether conduct is misleading, which of the following is most relevant?

The ability of the conduct to deceive the consumer Signup and view all the answers

What was the outcome of the case Butcher v Lachlan Elder Realty Pty Ltd regarding the misleading nature of the advertisement?

The advertisement was not misleading due to an effective disclaimer. Signup and view all the answers

What is the role of disclaimers in advertising according to the discussed cases?

They serve to clarify potentially misleading information. Signup and view all the answers

In the case Yorke v Lucas, what was the main issue concerning the misleading conduct?

Whether the seller provided misleading information to the agent. Signup and view all the answers

What does the term 'conduct that is misleading or deceptive' primarily refer to?

Presenting information in a manner that creates false impressions. Signup and view all the answers

Which of the following reflects the court's view on the necessity of intent in cases of misleading conduct?

Intent is not necessary for proving misleading conduct. Signup and view all the answers

What may result from a brochure effectually containing a disclaimer?

It alters the perception of the information presented. Signup and view all the answers

Which aspect of consumer protection laws is highlighted through the discussed legal cases?

They seek to eliminate misleading representations in advertising. Signup and view all the answers

How did the presence of a disclaimer in the Butcher case influence the interpretation of the advertisement?

It shifted the focus to the source of information provided. Signup and view all the answers

Study Notes

Misleading or Deceptive Conduct: Section 18 of the ACL

Prohibition: A person must not engage in misleading or deceptive conduct in trade or commerce.
"Person" includes individuals and corporations.
"Trade or Commerce" refers to conduct that has a trading or commercial character.

Conduct that is Misleading or Deceptive

McWilliams Wines v McDonald's (1980): McWilliams Wines advertised cask wine under the name "Big Mac."
- This wasn't misleading because consumers would understand that wine and fast food are distinct, and McDonald's does not serve alcohol in Australia.
ACCC v TPG Internet (2013): TPG advertised very cheap unlimited internet plans, but the fine print said the offer was only available to customers who bundled their home phone line with TPG.
- The court found the advertising misleading because the dominant message was misleading, even if corrected later.
ACCC v Coles Supermarkets (2011): Coles promoted bread products as "baked today, sold today," despite the bread being partially baked elsewhere and frozen.
- The court held that the signs were misleading, even though there were signs disclosing the process. Consumers are likely to focus on the freshness of baked goods and interpret signs accordingly.

Internal Communications and "Trade or Commerce"

Concrete Constructions (NSW) Pty Ltd v Nelson (1990): Internal communications between employees not related to customers do not constitute "trade or commerce."

Disclaimers and Misleading Conduct

Butcher v Lachlan Elder Realty Pty Ltd (2004): A real estate agent (LER) advertised a property with an inaccurate diagram but included a disclaimer absolving them from accuracy guarantees.
- This disclaimer was deemed to change the nature of the conduct. Even though the diagram was inaccurate, the disclaimer shifted responsibility for verifying the information to the buyer.

Intention

Yorke v Lucas (1998): It is not necessary to prove that the conduct was intentional or negligent for it to breach Section 18.

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Description

This quiz explores Section 18 of the Australian Consumer Law (ACL) regarding misleading or deceptive conduct in trade or commerce. It covers key case studies including McWilliams Wines v McDonald's, ACCC v TPG Internet, and ACCC v Coles Supermarkets to illustrate the principles at play. Test your understanding of legal interpretations and implications in commercial advertising.