Question
Bruce lives in western New South Wales and sells boomerangs from the shop in front of his house. Business has been slow since he hurt
Bruce lives in western New South Wales and sells boomerangs from the shop in front of his house. Business has been slow since he hurt his arm, so Bruce decides to raise his profile with an extensive advertising campaign. He makes a number of different claims about his boomerangs which results in a lot of sales, but also a lot of complaints from customers, and these attract the attention of the regulator. An investigator from the ACCC visits Bruce to discuss several possible breaches of the ACL.
1. One of Bruce's advertisements says his boomerangs are the best in the universe. Is this misleading or deceptive conduct in breach of s.18 of the ACL, and why?
2. Another of Bruce's advertisements says his boomerangs are all made in Australia and cost only $150. In fact Bruce imports many of the boomerangs from overseas, paints them with Australian animals and then charges an extra $50. There are only painted boomerangs for sale in Bruce's shop and they cost $200 each. What unfair practices is Bruce conducting?
3. In a sign in the shop window, Bruce says his boomerangs are made from solid timber hardwood and don't need any special packaging for transport overseas. In fact they are quite fragile after they arrive from overseas and often break, even when they are carefully packed in bubble wrap. What consumer guarantee has been breached and what remedies are available to Bruce's unhappy customers, and to the ACCC?
4. Bruce had the sign in his shop window printed as an advertisement in the local paper. Is the newspaper publisher also in breach of the ACL, and why?
5. After a long discussion with Bruce about the many concerns he has with Bruce's advertising campaign, the ACCC investigator applies to the court for a non-putative order. What does this mean, and what activities could the court order Bruce to undertake?
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