A property developer fails to disclose that a major highway extension is planned near a new housing development. This information was available in council planning documents. What type of conduct does this represent?
Correct Answer
D) Misleading conduct by omission under section 18 of the Australian Consumer Law
Misleading conduct can occur through omission when a business fails to disclose material facts that would influence a consumer's decision. The developer's failure to disclose planned infrastructure changes that could significantly impact property values constitutes misleading conduct.
Why This Is the Correct Answer
Silence can mislead where buyers would reasonably expect a material fact to be disclosed. Staying quiet about a planned highway beside the development is misleading conduct by omission under section 18.
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