Misleading Advertisement

1609 Words May 9th, 2013 7 Pages
Sheldon College

Contract Law

Term 1, Legal Studies, 2013

Mitchell Bognar

Legal Speech:

In Australia’s ever growing business economy, contracts are becoming more evident in enforcing promises between parties. From contracts involving informal agreements (buying food from your local supermarket) to written documents concerning a legally binding agreement (buying and selling a block of land), contracts are in practically every concordat. The legal restrictions in relation to contract law are unclear with regards to company advertisement campaigns. The legal definition of misleading advertisements is undefined within the current Queensland Legislation, with businesses being unsure with how misleading differs from invitation to
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More structure and clarity is required within the legislation to remove the controversy between contract law terms.

The Second issue is in relation to punitive punishments being inconsistent between cases within Australia, causing inefficiencies within the Competition and Consumer Act (2010) (Cth). Punishments awarded vary significantly for misleading advertisements, from $850 000 against Metricon Queensland to $3.6 million upon the famous phone company Optus. For a company as successful as Metricon Queensland, an $850 000 fine wouldn’t leave a dent on the company, due to the fact that each of the advertised houses were valued at $307 483 (Metricon QLD Nailed for Misleading and Deceptive Conduct, 2012). Compared to a $3.6 million fine which would be a wake up call for Optus, however the punishment is still less than 1% of the overall annual profit for the successful phone company (Battersby, 2012). Both of these successful organisations were repeat offenders, with Optus offending 11 times and Metricon Queensland misleading consumers throughout various times in 2009 and 2011. There are various cases where the punitive punishments are varied upon different companies similar to that of the Optus and Metricon Queensland cases, whilst at the same time enforcing insignificant punishments towards large businesses. The Competition and Consumer Act (2010)
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