Answer to Question #185718 in Economics for hayat

Question

In 2019, a well-known technology company was sued by the Australian Competition and Consumer Commission (ACCC) regarding claims in its advertisement relating to representations of the water-resistance of its mobile phones. The advertisement depicted people swimming in pools and surfing in the ocean with the phones, claiming that they were water-resistant up to 1.5 metres deep for 30 minutes. It was alleged that the advertisement misrepresented the phone quality, making them appear suitable for all types of conditions when clearly, they were not.

1. Identify and describe the type of consumer law that would relate to misleading and deceptive conduct in this case study. (2 marks)
2. Analyze what a consumer who believes in the quality of the phone from the advertisement can request the company to do to protect his/her consumer rights. (3 marks)

Answer 1

1. The type of consumer law that would relate to misleading and deceptive conduct in this case study is the scientific claim. According to it advertisers must not misrepresent scientific claims, and consumers do not have the knowledge or data to assess scientific claims properly.

2. A consumer who believes in the quality of the phone from the advertisement can request the company to change the advertisement or to fix the phone to meet the requirements.