It is unlawful to make false claims or misleading claims or representations:
• about the supply or possible supply of goods or services
• when promoting the supply or use of goods or services.
For instance, a business must not make false or misleading representations about:
• the standard, quality, value or grade of goods or services
• the composition style, model or history of goods
Courts have found false and misleading representations in these cases:
• a manufacturer sold socks, which were not pure cotton, labelled as ‘pure cotton’
Legal reference: TPC v Pacific Dunlop limited (1994) ATPR 41-307
• a retailer placed a label on garments showing a sale price and a higher, strikethrough price. However, the garments had never sold for the higher price
Legal reference: TPC v Cue Design Pty Ltd (1996) A Crim R 500; ATPR 41-475
• a business made a series of untrue representations about the therapeutic benefits of negative ion mats it sold
Legal reference: ACCC v Giraffe World Australia Pty Ltd (1999) 95 FCR 302; 166 ALR 74
• a motor repairer told a customer more repair work was needed on their car than was necessary
Legal reference: Dawson v Motor Tyre Service Pty Ltd (1981) ATPR 40-223
