The Impact Of Media On The Fair Trading Act 1987

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A consumer defined in the Fair Trading Act 1987 (NSW) is ‘any person who acquires goods and services from a supplier’. The Industrial Revolution resulted in most goods being mass produced; often with little or no contact between manufacturer and consumer. This meant that the law moved from the laissez-faire approach (leaving things to take their own course) to consumer affairs and notion of caveat emptor (Latin for Let buyer beware). Due to the never ending failure of laissez-failure approach, a number of legal and non-legal measures were introduced which had different levels of effectiveness in achieving justice for consumers. Government regulation such as Trade Practises Act which includes Advertising and Marketing regulation, Fair…show more content…
This can be seen in ACCC Annual Report of 2005 which states “that attempts at bait advertising and deceptive marketing practices has reduced by over 70% since the act was passed.” The annual report also demonstrates that accessibility of the legal system has been effective, as “5552 complaints of false advertising have been lodged under the Trade Practises Act since 1994”. Precepts of ‘bait advertising’ as result of the Reardon v Morley Ford Pty Ltd (1980) 49 FLR 401, where the car company was brought to the Federal Court and charged with bait advertising when it had advertised cars it had no intention to sell, have now been incorporated into both State and Federal legislation. Trade Practices Act 1974 is effective as it is enforceable. One avenue of enforcement is through the Australian Competition and Consumer Commission (ACCC). ACC set up in 1995 whose primary aim is to protect the rights of consumers and business by encouraging vigorous competition in the marketplace and enforcing consumer protection and fair trading laws, particularly the Trade Practices Act. The ACCC aims to help consumers by prohibiting conduct by business which is misleading or deceptive or which is likely to mislead or deceive, ensuring businesses comply with product safety standards, making manufacturers and importers liable for defective goods and prohibiting unconscionable conduct by businesses in their dealings with consumers. It is effective due to
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