Trade practices

The Trade Practices Act ('the Act') prohibits conduct in Australia which is misleading or deceptive or which is likely to mislead or deceive. The Act also specifically prohibits other conduct, including certain types of false representations, pyramid and referral selling, offering prizes or free items without the intention of providing them as advertised and asserting the right to payment for unsolicited goods or services. If you're entering into online transactions with consumers or if you're just putting information about your business or your products up on the Internet, you need to make sure the material complies with the Trade Practices Act.

There are a number of general rules which should apply to any business engaged in advertising and selling. The Commission's publication, Advertising and Selling, can assist business in relation to these principles. This guide focuses on the things that make the online medium different from other forms of publication and assist businesses in coming to grips with these differences.

In particular, misleading or deceptive conduct is illegal under the consumer protection provisions of the Australian Trade Practices Act 1974. Specific warranties and conditions may be implied into your electronic contracts for goods and services, depending on the type of goods and services being purchased and the value of the contract, while certain conduct is simply prohibited.

You cannot exclude the specific warranties outlined in the Trade Practices Act from your contract. If you do, they may be implied into your contract by a Court. These include a warranty of good title, compliance with description (fitness for purpose), due care and skill in providing services.

You should ensure that a consumer using your website is not actually, or likely to be, misled or deceived by any material on your website. You should also ensure that when linking between websites there is no confusion as to the ownership of each website.

If you make statements or implications about goods or services on your website they must be accurate.

You cannot falsely offer discount prices for goods and services and you cannot offer goods and services to customers on the condition that they purchase from specific sources or are obligated to other providers of goods or services nominated by you.

Your contracts may not be enforceable if they are entered into by forceful or exploitative means.