EstatePass
Consumer ProtectionMisleading ConductEASY

Which of the following statements about misleading conduct under the Australian Consumer Law is correct?

Correct Answer

D) It covers conduct likely to mislead or deceive, even if no one was misled

Under Section 18 of the Australian Consumer Law, misleading or deceptive conduct includes any conduct that is likely to mislead or deceive, regardless of whether actual deception occurred or financial loss was suffered. This applies to all forms of communication and conduct in trade or commerce.

Answer Options
A
It applies only to written representations such as advertisements and brochures
B
It binds licensed agents, not developers selling homes
C
It is proved only when the consumer shows they suffered an actual financial loss
D
It covers conduct likely to mislead or deceive, even if no one was misled

Why This Is the Correct Answer

Section 18 of the Australian Consumer Law prohibits conduct that is misleading or deceptive or likely to mislead or deceive. The test is the likely effect on the target audience, so no one needs to have actually been misled.

Why the Other Options Are Wrong

Deep Analysis of This Consumer Protection Question

Background Knowledge for Consumer Protection

Memory Technique

Exam Tip for Consumer Protection

Real World Application in Consumer Protection

Common Mistakes to Avoid on Consumer Protection Questions

Related Topics & Key Terms

Key Terms:

Australian Consumer LawSection 18misleading conductlikely to misleadconsumer protection
Was this explanation helpful?

More Consumer Protection Questions

People Also Study

Practice More AU Questions

Access 1,100+ Australian real estate practice questions and ace your Certificate IV.

Browse All AU Questions