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Australian Consumer Law .
Traders are often very imaginative when advertising and promoting their goods for sale, but in doing so, they have to ensure that advertising material (including catalogues) does not contain misleading information.
'Bait advertising' is when traders advertise a small number of goods at attractive prices to entice potential customers into their premises, and when the advertised goods quickly run out, customers are re-directed to higher priced or lower quality goods at the advertised price.
Traders are responsible for ensuring that adequate supplies of the goods are available for the duration of the sale.
Traders should offer goods at a special price only if they are available in reasonable quantities for a reasonable period. If traders know they will be unable to supply the goods in reasonable quantities for a reasonable period, and still go ahead, they may be committing an offence.
For example, if the offer is for a limited period, this should be stated in the advertisement. If the stocks are genuinely limited, such as a clearance sale, traders should say so in the advertisment.
'Misleading advvertising' is illegal. Traders have a responsibility to follow these principles:
Ensure that advertised products are exactly as they have been described or promoted;
If selling seconds or slightly damaged goods, traders must ensure that they specify any defect that the customer should know about; and,
Traders must not imply that they, their business, or the goods or services have endorsement, approval, performance charracterisitics or benefits that they do not have.
Advertisements that show goods or services available at an attractive low deposit, or on low repayment terms, may be misleading if the full price of the goods or services is not stated.
Traders are required to ensure that each representation in advertisements or promotional material is factual. In other words, the overall impression created about the goods or services being sold cannot be misleading.
Advertisements should provide details of the items not included in any sale.
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