What constitutes a breach of the Fair Trading Act?

Advertising a product as "free" when there are hidden costs constitutes a breach of the Fair Trading Act because it misleads consumers by omitting significant information that would affect their purchasing decision. The Fair Trading Act is designed to promote fair competition and protect consumers from misleading or deceptive conduct. When a product is advertised as "free," consumers expect no additional costs or charges; however, if there are hidden costs, this can create a false impression and lead consumers to make decisions based on incomplete or incorrect information. Such practices undermine consumer trust and the principles of transparency and honesty that the Act seeks to enforce.

In contrast, accurate representations of product features, clear return policies, and comprehensive product warranties do not inherently breach the Fair Trading Act. These practices support fair trading and help consumers make informed decisions, aligning with the goals of consumer protection legislation rather than violating them.