What did the case Cerebos Greggs Ltd v Unilever NZ Ltd (1994) clarify about FTA section 9?

The case of Cerebos Greggs Ltd v Unilever NZ Ltd (1994) is significant in clarifying the application of section 9 of the Fair Trading Act (FTA) in New Zealand. This case emphasized that the courts should adopt an objective approach when assessing the conduct of businesses.

By stating that the court must consider an objective appraisal of conduct, it means that the behavior in question should be evaluated based on what a reasonable person would understand from it, rather than focusing on the subjective intent of the party involved. This shift ensures that the protection of consumer rights is prioritized, and misleading or deceptive conduct is assessed based on its potential to mislead consumers, regardless of whether there was a deliberate intent to deceive by the business in question. Thus, the emphasis on an objective standard plays a crucial role in ensuring fair trading practices and holding businesses accountable for their actions in the eyes of consumers.

The other options do not accurately reflect the clarifications provided by this case. Actual intent to deceive is not a necessary factor under section 9, and confusion among consumers, while relevant, is not a standalone basis for claims without considering the conduct objectively. Lastly, there’s no requirement that injury to the plaintiff must always be evident for a breach of section