Which method is used to determine if conduct is misleading in one-to-one cases?

The three-step test or reasonable person standard is the preferred method for determining if conduct is misleading in one-to-one cases under New Zealand Consumer Law. This standard requires considering how a reasonable person would interpret the information presented in a specific context. The focus is on the impression created by the conduct, rather than just objective measures or expert opinions.

This method emphasizes the subjective experience of consumers and aims to provide a clear understanding of whether the communications or actions of a seller could mislead a potential buyer. The reasonable person standard serves to ensure that the evaluation of misleading conduct is relevant to the expectations and understandings of the average consumer, thereby promoting fairness in the marketplace and protecting consumers against deceptive practices.

The other methods are less appropriate in one-to-one cases because they either rely on statistical averages that may not reflect individual circumstances or involve quantifiable metrics that do not take consumer perception directly into account. In contrast, the three-step test captures the nuances of individual cases, aligning closely with the intent of consumer protection laws.