Under WA consumer protection law, how does the 'due diligence' defence apply when an agent is accused of misleading or deceptive conduct?
Correct Answer
D) Section 18 has no due diligence defence; liability does not depend on intent or care
Section 18 of the Australian Consumer Law (misleading or deceptive conduct) is a strict liability provision — there is no due diligence defence. Even if an agent took reasonable steps to verify information, they can still be liable if their conduct was misleading. However, due diligence may be relevant to penalty mitigation or as a defence to specific false representation provisions.
Why This Is the Correct Answer
Liability under section 18 depends on whether the conduct was misleading or likely to mislead; the agent's intent and the care taken do not provide a defence.
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