Can a company be liable for misleading a consumer?

The agency had made a false statement about a future matter but had reasonable grounds for making these statement, so was not liable for misleading consumers. A wildly exaggerated or vague claim about a product or service is known as ‘puffery’. This type of claim is one that no reasonable person could treat seriously or find misleading.

Can a business give a misleading reason for raising prices?

Businesses can legally raise their prices but they must not act in a misleading or deceptive way, or give false reasons for any price rises. If you suspect a business is giving false or misleading information about why prices have increased, you can report it to the Commerce Commission.

Is it legal to overcharge a business in New Zealand?

Overcharging Businesses can legally raise their prices but they must not act in a misleading or deceptive way, or give false reasons for any price rises. You can report any concerns by email to [email protected]

What is the definition of misleading and deceptive conduct?

Misleading or deceptive conduct is when a business makes claims or representations that are likely to create a false impression in consumers as to the price, value or quality of goods or services on offer. This is against the law.

When is a misleading action by a trader unlawful?

The 2008 Regulations make misleading actions unlawful (see regulation 5). An action by a trader is misleading if it contains false information or if it is likely to mislead the average consumer in its overall presentation. 7.

Is it illegal to use misleading and aggressive commercial practices?

The 2008 Regulations made it a criminal offence to use misleading or aggressive commercial practices. However, consumers had no private right of redress against the trader. This was a problem because it left some victims with no remedy, while others needed to rely on complex civil law. 3.

What makes a misleading omission a misleading action?

In most situations, omitting material information would create a misleading overall presentation, and therefore count as a misleading action. 10. Misleading omissions remain a criminal offence under regulation 6 of the 2008 Regulations, enforceable by Trading Standards, but consumers have no private remedy against the trader.

What happens when a company makes a false or misleading representation?

In situations where a person has made materially false or misleading representations about a product to the public, the court may also make an order for restitution, requiring the person to compensate consumers who bought such products, and an interim injunction to freeze assets in certain cases.