– Deceptive and misleading advertising

When, in the promotion of a product or service, a representation is made to the public that is false or misleading.

Examples: Overstating benefits, offering discounts that don’t exist, bait and switch advertising.

• Bait and switch advertising: promoting a heavily discounted product despite the business having limited or no supply.

– Price discrimination

• Charging different prices to different customers for the same product
• NB: Discounts for bulk buying are legal.
• Differences in price is possible when markets are geographically separated or there is product differentiation within the one market.
• The Competition and Consumer Act 2010 prohibits price discrimination if the discrimination could substantially reduce competition.

– Implied conditions

The unspoken and unwritten terms of a contract.

• Under the Competition and Consumer Act goods purchased by consumers must be:
• Acceptable quality (up to standard for its price & free of defects)
• Fit for purpose
• Match description or sample

– Warranties

• Promise made by business to repair or replace faulty products within certain time period
• All products have implied warranty. By law, a business must refund the client’s money or exchange the good if it is recognised to have been faulty when it left the store.