A WA developer engages in 'bait advertising' by promoting properties at prices they have no intention of selling at. Under the Australian Consumer Law, what is the potential consequence?
Correct Answer
B) Pecuniary penalties that can run to millions, plus injunctions and corrective advertising
Bait advertising is prohibited under section 35 of the Australian Consumer Law. Penalties for corporations can reach millions of dollars per contravention. Courts can also order injunctions, corrective advertising, and other remedies. Individuals involved can also face personal liability.
Why This Is the Correct Answer
Section 35 of the ACL is a civil penalty provision; corporations face penalties in the millions, and courts can grant injunctions and order corrective advertising.
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