Fair Trading Act 1986

A local company is the New Zealand distributor for "Wrinkle Away" tablets which are

claimed to be a natural remedy from the Incas of Peru designed to make wrinkles disappear

after three months of use. The tablets are purchased online and are also available from

some retail outlets. Customers are to be supplied with three months of tablets at a cost of

$120 per order, with repeat orders as required.

On its website www.wrinkleaway.com (now offline) the company claimed that the product

is the result of 20 years' research and has been used in America and Europe for more than

five years and in NZ since 2020. It said it has an 85-90 per cent success rate and is 100 per

cent natural.

It further claimed on its website that "this method has amazed more than 350,000 people

worldwide to help improve the appearance of the skin safely, naturally and permanently".

Independent experts have reviewed the supporting evidence provided by the company and

found there was no scientific basis for those claims, and no ingredients from South America

in the tablets. The scientific analysis of the tablets has, however, identified the presence of a

compound that may cause a harmful bodily reaction for some people.

The compound is a chemically produced growth hormone that has not been approved for

use by international regulatory organisations such as the European EMA and the US FDA

because of its risks to people's health. For some people, the risk is serious and could lead to

significant health complications.

Required:

With reference to the Fair-Trading Act 1986 explain:

(a) Explain how advertising of "Wrinkle Away" is in breach of the Fair-Trading Act 1986.

Refer to specific sections of the Act and explain how the company has breached

these sections.

ANSWER

(b) Explain the criminal liability and penalties the company may be liable for.

Include in your answer an explanation of the process that leads to court action

against the company. Also identify the court's likely decision in this case.

Refer to all relevant sections of the Act in your answer.

ANSWER

(c) Explain the relevant civil actions available under the Fair Trading Act, including

any potential remedies for affected parties. Please refer to all relevant sections of

the Act in your answer.

ANSWER