Answer to Question #185671 in Economics for Hayat

Question

Explain the three different types of misleading and deceptive conduct; bait advertising, scientific claims, and country of origin, covered by Section 18 of the Australian Consumer Law (ACL).

Answer 1

1) Bait advertising can be a legitimate form of advertising. However, it is illegal to engage in this conduct where goods or services are advertised for sale at a discounted price, and they are not available in reasonable quantities and for a reasonable period at that price.

2) Scientific Claim:

• Advertisers must not misrepresent scientific claims,

• Consumers do not have the knowledge or data to assess scientific claims properly.

3) Whether you choose to make a country of origin representation about your goods, or are legally required to 

do so, the ACL requires that it be clear, accurate and truthful. 

Country of origin representations include:

• explicit claims that a good was grown, produced or made in a certain country

• the use of images and/or words which suggest that a product originated in or from a particular country.