What is an unfair trading practice as defined by the Fair Trading Act?

The Fair Trading Act in New Zealand aims to promote fair competition and protect consumers from unfair trading practices by prohibiting misleading or deceptive conduct in trade. This definition encompasses any actions that could mislead consumers about the nature, attributes, or benefits of products or services.

Misleading or deceptive conduct can arise in various forms, such as false advertising, making unsubstantiated claims about a product's quality or effectiveness, or presenting information in a way that confuses consumers. By focusing on the impact of conduct on consumers, this provision guards against practices that could create misconceptions or undermine trust in the marketplace.

The other options suggest different aspects of trading practices but do not capture the essence of what constitutes an unfair trading practice as defined by the Fair Trading Act. Promotion that exceeds a product's capabilities can be misleading, but the broader definition of misleading or deceptive conduct encompasses a wider range of unfair practices. Failure to honor a warranty is a separate issue typically governed by warranty laws and may not directly fall under the definition of unfair trading practices in the same way. Refusing to provide customer service, while potentially problematic in a business context, does not inherently constitute misleading or deceptive conduct regarding the sale of goods or services.