Under the Australian Consumer Law (as applied in SA), what is misleading or deceptive conduct?

Q: What is the correct answer to: Under the Australian Consumer Law (as applied in SA), what is misleading or deceptive conduct?

The correct answer is Conduct that is likely to mislead or deceive, regardless of whether the person intended to mislead or anyone was actually misled. Option B correctly defines misleading or deceptive conduct as conduct likely to mislead or deceive, regardless of intent or actual deception. Under Section 18 of the ACL, the test is objective — whether the conduct would mislead a reasonable person — making intent and actual harm irrelevant to establishing the contravention.

Q: What background knowledge is needed for this Consumer Protection question?

Section 18 of the ACL is one of the most frequently litigated consumer protection provisions in Australia. In real estate, common examples include overstating property size, misrepresenting renovation quality, failing to disclose known defects, and misleading advertising about property features or location attributes.

Q: What is a good way to remember the answer to this Consumer Protection question?

Misleading conduct: no intent required, no actual deception needed. Just 'likely to mislead' is enough. For ACL misleading conduct questions, remember: objective test, no intent, no actual harm required.

Q: What exam tip applies to this Consumer Protection question?

Intent and actual deception are irrelevant. The test is whether the conduct is 'likely to mislead or deceive' a reasonable person.

Q: How does this Consumer Protection concept apply in Australian real estate practice?

An agent honestly believes a property is 200 sqm based on the vendor's claim but it is actually 160 sqm. Despite no intent to mislead, advertising the incorrect size constitutes misleading conduct because the representation was likely to deceive potential buyers.

Question

Consumer ProtectionSAEASY

Under the Australian Consumer Law (as applied in SA), what is misleading or deceptive conduct?

Answer Options

A

Conduct that is only deceptive if it results in financial loss

B

Conduct that is likely to mislead or deceive, regardless of whether the person intended to mislead or anyone was actually misled

C

Only written statements that contain false information

D

Conduct that is deceptive only if it involves a written contract