What distinguishes 'deceptive conduct' from 'misleading conduct'?

The distinction between deceptive conduct and misleading conduct in New Zealand consumer law is primarily centered on the nature of the conduct and its impact on consumers.

Deceptive conduct is characterized by actions that create a false belief in the minds of consumers. This means that deceptive conduct actively leads consumers to hold inaccurate perceptions or assumptions regarding a product or service, often involving intentional strategies to mislead. The emphasis here is on the result — the creation of a false belief that consumers accept as true due to the actions of the seller or advertiser.

On the other hand, misleading conduct encompasses a broader range of behaviours that may lead consumers to be confused or misled, but doesn't necessarily require the establishment of a false belief. It includes situations where information may be presented in a way that confuses or misleads consumers, irrespective of whether the intention behind such conduct was to deceive.

Recognizing this subtle distinction is critical for understanding how consumer protection laws are applied in practice, particularly in assessing liability and determining the outcomes of cases under the Fair Trading Act in New Zealand. This understanding helps organizations navigate compliance issues and protects consumers from both misleading and deceptive conduct in the marketplace.