UNIT 4
PART E: RIGHT TO FAIR AND RESPONSIBLE
MARKETING
- “Market”: when used as a verb in the Act means to promote or supply goods or
services
- “Promote”: means to
o Advertise, display, or offer to supply any goods or services in the ordinary
course of business to the public for consideration
o Make any representation in the ordinary course of business that could be
reasonably inferred as expressing a willingness to supply any goods or
services for consideration
o Engage in any conduct that may be reasonably construed as inducement or
attempt inducement to a person to engage in a transaction
GENERAL STANDARDS FOR MARKETING OF GOODS AND SERVICES
- A producer, importer, distributor, retailer or service provider is prohibited from
marketing goods in a manner reasonably likely to imply false or misleading
representation concerning those goods and services as contemplated in section 41.
- They are also prohibited from marketing in a manner that is misleading, fraudulent
or deceptive in a way including the conditions on which goods are supplied, price…
BAIT MARKETING
- “BAIT MARKETING”: where a supplier advertises specific goods at a discounted
price, but his aim is to draw consumers to his premises in the hope that once they
are there, they will also buy other goods. (EASTER EGGS – have to buy it so you can
open the packet and enter)
- A supplier may not advertise any particular goods or services as being available at a
specified price in a manner that may result in consumers being misled or deceived in
any respect relating to the actual availability of those goods from the supplier at that
advertised price
o SUPPLIERS DEFENCE FOR BAIT MARKETING: a supplier who fails to comply
has a defence if he offered to supply or procure another person wo supply a
consumer with the same or equivalent goods or services of the kind
advertised within a reasonable time, in a reasonable quantity at the
advertised price and the consumer unreasonably refused that offer or
, accepted the offer and the goods were supplied to the consumer (Don’t have
your size shoe at Gateway so say they will get it from PAVILION)
“While stocks last”
NEGATIVE OPTION MARKETING
- A supplier must not promote any goods or services, offer to enter into or modify an
agreement, or induce a person to accept any goods or services on the basis that the
goods or services will automatically come into existence unless the consumer
declines such offer or inducement
- Such offer or inducement will be VOID
CATALOGUE MARKETING
- “Catalogue marketing”: an agreement for the supply of goods or services that is not
entered into in person, including an agreement concluded telephonically, if the
contact is initiated by the consumer, or by the post/fax.
- A supplier must disclose the following information to a consumer:
o Suppliers name and license or registration number
o Address of the suppliers physical business premises
o Sales record information
o Currency in which amounts under agreement are payable
o Suppliers delivery arrangements, including identity of shipper, mode of
transportation and place of delivery
o Suppliers cancellation, return, exchange and refund policies
o Manner and form in which a complaint may be lodged
o Other prescribed information
TRADE COUPONS AND SIMILAR PROMOTIONS
- Does not apply to a franchise agreement, loyalty programme, loyalty credit or award
or a promotional competition
- “promotional offer”: an offer or promise, expressed in any manner, of any prize,
reward, free thing or service (PRFS)
- A person must not make a promotional offer with the intention of not fulfilling it, or
fulfilling it other than as offered
- Any document setting out a promotional offer must clearly state:
o Nature of PRFS
o Goods and services to which offer relates
o Steps required by a consumer to accept the offer or to receive the benefit of
the offer
PART E: RIGHT TO FAIR AND RESPONSIBLE
MARKETING
- “Market”: when used as a verb in the Act means to promote or supply goods or
services
- “Promote”: means to
o Advertise, display, or offer to supply any goods or services in the ordinary
course of business to the public for consideration
o Make any representation in the ordinary course of business that could be
reasonably inferred as expressing a willingness to supply any goods or
services for consideration
o Engage in any conduct that may be reasonably construed as inducement or
attempt inducement to a person to engage in a transaction
GENERAL STANDARDS FOR MARKETING OF GOODS AND SERVICES
- A producer, importer, distributor, retailer or service provider is prohibited from
marketing goods in a manner reasonably likely to imply false or misleading
representation concerning those goods and services as contemplated in section 41.
- They are also prohibited from marketing in a manner that is misleading, fraudulent
or deceptive in a way including the conditions on which goods are supplied, price…
BAIT MARKETING
- “BAIT MARKETING”: where a supplier advertises specific goods at a discounted
price, but his aim is to draw consumers to his premises in the hope that once they
are there, they will also buy other goods. (EASTER EGGS – have to buy it so you can
open the packet and enter)
- A supplier may not advertise any particular goods or services as being available at a
specified price in a manner that may result in consumers being misled or deceived in
any respect relating to the actual availability of those goods from the supplier at that
advertised price
o SUPPLIERS DEFENCE FOR BAIT MARKETING: a supplier who fails to comply
has a defence if he offered to supply or procure another person wo supply a
consumer with the same or equivalent goods or services of the kind
advertised within a reasonable time, in a reasonable quantity at the
advertised price and the consumer unreasonably refused that offer or
, accepted the offer and the goods were supplied to the consumer (Don’t have
your size shoe at Gateway so say they will get it from PAVILION)
“While stocks last”
NEGATIVE OPTION MARKETING
- A supplier must not promote any goods or services, offer to enter into or modify an
agreement, or induce a person to accept any goods or services on the basis that the
goods or services will automatically come into existence unless the consumer
declines such offer or inducement
- Such offer or inducement will be VOID
CATALOGUE MARKETING
- “Catalogue marketing”: an agreement for the supply of goods or services that is not
entered into in person, including an agreement concluded telephonically, if the
contact is initiated by the consumer, or by the post/fax.
- A supplier must disclose the following information to a consumer:
o Suppliers name and license or registration number
o Address of the suppliers physical business premises
o Sales record information
o Currency in which amounts under agreement are payable
o Suppliers delivery arrangements, including identity of shipper, mode of
transportation and place of delivery
o Suppliers cancellation, return, exchange and refund policies
o Manner and form in which a complaint may be lodged
o Other prescribed information
TRADE COUPONS AND SIMILAR PROMOTIONS
- Does not apply to a franchise agreement, loyalty programme, loyalty credit or award
or a promotional competition
- “promotional offer”: an offer or promise, expressed in any manner, of any prize,
reward, free thing or service (PRFS)
- A person must not make a promotional offer with the intention of not fulfilling it, or
fulfilling it other than as offered
- Any document setting out a promotional offer must clearly state:
o Nature of PRFS
o Goods and services to which offer relates
o Steps required by a consumer to accept the offer or to receive the benefit of
the offer
