Fair Trading Act 1986

Frankie starts a new business doing catering for parties at peoples homes. She drives a caravan to the clients home and makes pizzas for guests. Frankies website makes the following claims, which are also printed on the side of her caravan:

• By appointment to the PM! Jacinda Ardern says were the best!

• Proven to prevent hangovers! Our cheeses absorb alcohol.

• All products imported from Italy!

a) A competitor of Frankies, Matteo, believes Frankies claims to be false. He wants to make a complaint under the Fair Trading Act 1986.

i) Frankie says that the Act does not apply to her because the pizza caravans are not her main business theyre just a hobby she has on the side. Apply the relevant provision in the Fair Trading Act 1986 to determine whether this argument is correct.

ii) Name the organisation that Matteo would lay a complaint with and explain this organisations role in relation to the Fair Trading Act 1986.

b) Assume that all of the statements made in Frankies advertisement are false. For each one, identify the specific provision of the Act that has been breached and explain why the statement is a breach of the Fair Trading Act 1986.

c) Matteo feels that Frankie should be ordered to place a statement on her website and on her caravan correcting the false statements she made. Citing the relevant provisions in the Fair Trading Act 1986, explain whether this is an order that could be made against Frankie.