Starter – Recap Quiz CGA • From Yesterdays class List 3 things that is covered under the Consumer Guarantees Act: • There's 6 possible options – you only need 3 • - • - • - • - • - • -
Answers – 6 options • 1. Be of acceptable quality. • 2. Be fit for a particular purpose that you asked about. • 3. Match the description given in advertisements or sales brochures, or by the sales assistant. • 4. Match the sample or demonstration model. • 5. Be owned by the consumer, once purchased. • 6. Be a reasonable price, if no price or pricing formula has been previously agreed.
3 Basic Principles of FTA: • It Prohibits: • Misleading or deceptive conduct • False representation • Certain Unfair prices.
1. Misleading or Deceptive Conduct: • The Law states that it is illegal to mislead you through false advertisements. • Example - The Fuel Economy of a new car is advertised as being only using 4 litres per 100km. • The Ad – Does not state that: • It was done by a specialist Driver • The trial was done under special conditions. • Case Study - Discussion
2. False Representation • This part of the Act particularly covers untrue statements about: • The Standard, Quality, Grade or Quantity of the goods or services • The composition or manufacturing process • The performance of the product • Example: • Jane buys a solid “Rimu” Chair. After she takes it home she realises it just your run of the mill exotic • You’re Examples!!!!!!!!
Activity: Create your own Examples • Create 5 of you own examples of False Representation • - • - • - • - • - • You will then share them with the class
3. Unfair Practises • The FTA 1986 – also prohibits some specific sales techniques that it describes as “Unfair Practises” • Offering Prizes or Free gifts – without intending to supply them. • Bait Advertising – advertising goods or services at one price then selling them at a very different price • Physical Force – Harassment or un-needed physical abuse • Examples – New World Offers new V energy drink at $1 a can but when you go to purchase some their charging $2.50 per can – This is an example of what? • Discussion!!!!!
Activity – Unfair Practises Filmstrip • Draw a rectangle in your book • Cut it up in to 3 segments • Draw a picture without using any word describing the 3 ideas behind unfair Practises.