Is it lawful for a trader to make false claims about a product?

Prepare for the New Zealand Consumer Law Exam. Enhance your knowledge with multiple choice questions, detailed explanations, and study resources. Get ready to ace your test!

The assertion that it is prohibited under the Fair Trading Act aligns with the principles set forth in New Zealand consumer law. The Fair Trading Act 1986 specifically targets misleading and deceptive conduct in trade, including the making of false claims about products.

Under this legislation, traders are expressly prohibited from making statements that are false or misleading in relation to goods or services they offer. This includes any claims about the quality, characteristics, or suitability of the product that could deceive consumers. The intention of the law is to maintain honest trading and ensure that consumers are not misled when making purchasing decisions.

The context provided by the Fair Trading Act ensures that all claims, regardless of whether they are deemed substantial or not, must be substantiated by the trader. There are no allowances for false claims simply because a disclaimer is attached or if the product is not defective. Such provisions are in place to protect consumers and promote fair competition among businesses.

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