South Australia's fair trading laws aim to create a fair and informed marketplace.
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OverviewActions and remediesYour approach to fair tradingOverview
Fair trading laws state that misleading or deceptive conduct is unacceptable regardless of whether your business supplies consumer goods or deals commercially with other businesses.
The laws recognise that the actions of unfair or unscrupulous operators can cause loss to traders as well as consumers.
Conduct is considered misleading if it creates a false overall impression leading to purchasers not receiving what they thought they were buying.
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Actions and remedies
Consumers and traders can seek various remedies if they believe they have been unfairly treated, misled or treated in a way that is illegal.
The Fair Trading Act 1987 provides a general right to damages or compensation where a breach of the Act occurs.
Court orders
Courts can make orders:
- to void or vary contracts
- for payment, refund of money or return of property
- to repair goods, supply parts for goods or supply specified services.
If, as a trader, you have been wronged you have the right to take action in the courts, including recovery of the amount of loss or damage. You also may apply for an injunction to prevent further or potential breaches of the Act. You may seek damages at the same time as making this application.
In very serious matters, the Commissioner for Consumer Affairs or Minister for Consumer Affairs may apply to the Supreme or District Court to:
- have advertising corrected
- remedy any adverse consequences of conduct in contravention of the Act
- seize money or other property.
Where traders have contravened the Act, the Commissioner may seek from them a written assurance they will refrain from such conduct.
Some offences can be expiated - ie the offender can pay a fine to avoid the matter proceeding through the court system.
The Commissioner can take criminal action where offences against the Act have been committed. The Courts can impose a maximum penalty of $100,000 on a body corporate and $20,000 in other cases.
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Your approach to fair trading
As a business operator you need to:
- be aware of the basic fair trading laws before starting to trade
- put in place policies and procedures consistent with the law
- be prepared to seek legal advice when necessary.
A good basis for avoiding problems is to follow ethical business practices that do not mislead or disadvantage consumers or other traders.
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More information
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Your fair trading obligations
Consumer protection law
Advertising and the law