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Scenario 2a: Hair Supreme Ltd (an Australian company) posts announcements on its Facebook profile claiming that one of its products, comprising a mixture of herbs

Scenario 2a:

Hair Supreme Ltd (an Australian company) posts announcements on its Facebook profile claiming that one of its products, comprising a mixture of herbs and vitamins, can not only stop but also reverse hair loss, with guaranteed results. The company has no evidence to support the claim and is aware of research conducted in the US indicating that the mixture has no effect on hair loss.

  1. What legislation is this breaching?
  2. What impact might this potential claim have on Hair Supreme Ltd.'s marketing opportunities?

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