Transcript Chapter 24 - McGraw Hill Higher Education

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Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
Advertising law
Chapter 24
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
by Barron & Fletcher. Slides prepared by Kay Fanning.
Advantages of
advertising
Provides information to consumers to
allow efficient choices.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
24-2
Product packaging and
labelling
• Common Law protection
• Statutory protection
Trade Practices Act 1974 (Cwlth)
- Misleading and deceptive conduct
- Unfair trade practices
- Product safety and information standards
Trade Measurement legislation
- National Measurements Act 1960 (Cwlth)
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
24-3
Disadvantages of advertising
Without regulations:
• Can provide false information
• May discourage smaller competitors
entering the market
• Can offend public
• May invade privacy
• Can be defamatory
• Can infringe on intellectual property
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
24-4
Advertising
Self Regulation of Advertising by Industry
Advertising Standards Bureau Ltd:
• AANA Advertiser Code of Ethics
• Advertising Standards Board
• Advertising Claims Board
Advertising Federation of Australia Code of
Practice
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Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
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24-5
AANA Advertiser Code of Ethics
Voluntary code to ensure that all
advertisements are legal, decent,
honest and truthful, and that they have
been prepared with a sense of
obligation to the consumer and society,
and a fair sense of responsibility to
competitors.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
24-6
The Advertising Standards
Board
• Maintains standards of taste and
decency in advertising
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Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
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24-7
The Advertising Claims
Board
Alternative dispute resolution for:
– Truth and accuracy of advertising
– Breaches of AANA Advertising Code of
Ethics
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
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24-8
Advertising Federation of
Australia Code of Practice
• Statement of ethics
• Code of practice (for member
agencies’ relationship)
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
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24-9
Other voluntary codes regulating
advertising
Advertising Direct Marketing Association (ADMA)
Rights for consumers
• A seven day cooling-off period
• An independent code authority with consumer
representatives
• Adoption of national privacy principles established
by the federal Privacy Commissioner
• Imposition of limits on telemarketing
• Compulsory use of a system which allows
consumers to register their decision not to receive
direct marketing offers from ADMA members
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
24-10
Direct marketing
•
•
•
•
ADMA Code of Practice
Australian Press Council
Australian Broadcasting Authority
Federation of Australian Radio
Broadcasters (FARB)
• Federation of Australian Commercial
Television Stations (FACTS)
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
24-11
Advertising
Statutory regulation of advertising:
-Trade Practices Act 1974 (Cwlth)
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
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24-12
Australian Competition and
Consumer Commission
Responsibilities:
• Undertakes price surveillance
• Holds inquiries into the supply of
specified goods and services
• Monitors the prices, costs and profits
of any industry or business, as
directed by the relevant minister.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
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24-13
“Major Australian Marketing
Law” legislation
• Trade Practices Act
– Federal legislation that regulates
company conduct
• Sale of Goods Act ACT
– State legislation that regulates
contracts
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
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“Major Australian Marketing
Law” legislation (continued)
• Fair Trading Act
– State legislation that regulates the
conduct of individuals (very similar
provisions to that of the Trade Practices
Act for companies).
• N.B. Multinationals must be aware of the
different legislation operating in each
country in which they do business!
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
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“Competition” laws
Prevent anti-competitive practices
e.g.
• Collusion
• Takeovers/mergers that create
monopoly situations (e.g. NM/ANZ)
• Collective boycotts
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
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Trade Practices Act 1974 (Cwlth)
• S52: Prohibition on misleading and deceptive
conduct.
• S53: Prohibition on making false
representations in connection with the supply or
promotion of goods and services.
• S55 & 55A: Prohibition on conduct that is liable
to mislead the public as to the nature,
characteristics and suitability for purpose, or the
quality of any goods or services, or the
manufacturing process of any goods or services.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
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Common Law
• Law of Contract
- Breach of Contract (where purchaser can show
he/she entered contract based on a false
statement)
• Law of Torts
- Tort of deceit
- Negligence
- Tort of injurious falsehood
- Passing off
- Defamation
• Right of privacy
• Right of publicity
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
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Tort of deceit
• The representation made in the
advertisement is one of fact and not
an opinion, prediction or promise.
• The representation is false.
• The representation induces the
plaintiff to enter into a contract.
• The advertiser made the
representation knowing it to be untrue,
or was reckless as to its truth.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
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Tort of injurious falsehood
• Slander of goods
– A false statement is made about the
plaintiff.
– The statement is disparaging of the
plaintiff’s goods or services, or method of
carrying on a business, or title to
property.
– The statement is made maliciously.
– The plaintiff suffers, or is reasonably
likely to suffer, a loss of business.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
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Passing off
• The tort of “passing off” has been
committed where one trader causes
customers and potential customers to
incorrectly associate their products or
business with those of another trader,
or person.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
24-21