1. This is the prescribed textbook for your course.
Available NOW at your campus bookstore!
Copyright © 2000 McGraw-Hill Australia

2. Advertising law
Chapter 24

3. Advantages of advertising
Provides information to consumers to
allow efficient choices.
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4. Product packaging and labelling
Common Law protection
Statutory protection
Trade Practices Act 1974 (Cwlth)
- Misleading and deceptive conduct
- Unfair trade practices
- Product safety and information standards
Trade Measurement legislation
- National Measurements Act 1960 (Cwlth)
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5. Disadvantages of advertising
Without regulations:
Can provide false information
May discourage smaller competitors entering the market
Can offend public
May invade privacy
Can be defamatory
Can infringe on intellectual property
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6. Copyright © 2000 McGraw-Hill Australia
Advertising
Self Regulation of Advertising by Industry
Advertising Standards Bureau Ltd:
AANA Advertiser Code of Ethics
Advertising Standards Board
Advertising Claims Board
Advertising Federation of Australia Code of Practice
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7. AANA Advertiser Code of Ethics
Voluntary code to ensure that all
advertisements are legal, decent,
honest and truthful, and that they have
been prepared with a sense of
obligation to the consumer and society,
and a fair sense of responsibility to
competitors.
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8. The Advertising Standards Board
Maintains standards of taste and decency in advertising
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9. The Advertising Claims Board
Alternative dispute resolution for:
Truth and accuracy of advertising
Breaches of AANA Advertising Code of Ethics
Copyright © 2000 McGraw-Hill Australia

10. Advertising Federation of Australia Code of Practice
Statement of ethics
Code of practice (for member agencies’ relationship)
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11. Other voluntary codes regulating advertising
Advertising Direct Marketing Association (ADMA) Rights for consumers
A seven day cooling-off period
An independent code authority with consumer representatives
Adoption of national privacy principles established by the federal Privacy Commissioner
Imposition of limits on telemarketing
Compulsory use of a system which allows consumers to register their decision not to receive direct marketing offers from ADMA members
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12. Copyright © 2000 McGraw-Hill Australia
Direct marketing
ADMA Code of Practice
Australian Press Council
Australian Broadcasting Authority
Federation of Australian Radio Broadcasters (FARB)
Federation of Australian Commercial Television Stations (FACTS)
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13. Copyright © 2000 McGraw-Hill Australia
Advertising
Statutory regulation of advertising:
-Trade Practices Act 1974 (Cwlth)
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14. Australian Competition and Consumer Commission
Responsibilities:
Undertakes price surveillance
Holds inquiries into the supply of specified goods and services
Monitors the prices, costs and profits of any industry or business, as directed by the relevant minister.
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15. “Major Australian Marketing Law” legislation
Trade Practices Act
Federal legislation that regulates company conduct
Sale of Goods Act ACT
State legislation that regulates contracts
Copyright © 2000 McGraw-Hill Australia

16. “Major Australian Marketing Law” legislation (continued)
Fair Trading Act
State legislation that regulates the conduct of individuals (very similar provisions to that of the Trade Practices Act for companies).
N.B. Multinationals must be aware of the different legislation operating in each country in which they do business!
Copyright © 2000 McGraw-Hill Australia

17. Copyright © 2000 McGraw-Hill Australia
“Competition” laws
Prevent anti-competitive practices
e.g.
Collusion
Takeovers/mergers that create monopoly situations (e.g. NM/ANZ)
Collective boycotts
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18. Trade Practices Act 1974 (Cwlth)
S52: Prohibition on misleading and deceptive conduct.
S53: Prohibition on making false representations in connection with the supply or promotion of goods and services.
S55 & 55A: Prohibition on conduct that is liable to mislead the public as to the nature, characteristics and suitability for purpose, or the quality of any goods or services, or the manufacturing process of any goods or services.
Copyright © 2000 McGraw-Hill Australia

19. Copyright © 2000 McGraw-Hill Australia
Common Law
Law of Contract
- Breach of Contract (where purchaser can show he/she entered contract based on a false statement)
Law of Torts
- Tort of deceit
- Negligence
- Tort of injurious falsehood
- Passing off
- Defamation
Right of privacy
Right of publicity
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20. Copyright © 2000 McGraw-Hill Australia
Tort of deceit
The representation made in the advertisement is one of fact and not an opinion, prediction or promise.
The representation is false.
The representation induces the plaintiff to enter into a contract.
The advertiser made the representation knowing it to be untrue, or was reckless as to its truth.
Copyright © 2000 McGraw-Hill Australia

21. Tort of injurious falsehood
Slander of goods
A false statement is made about the plaintiff.
The statement is disparaging of the plaintiff’s goods or services, or method of carrying on a business, or title to property.
The statement is made maliciously.
The plaintiff suffers, or is reasonably likely to suffer, a loss of business.
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22. Copyright © 2000 McGraw-Hill Australia
Passing off
The tort of “passing off” has been committed where one trader causes customers and potential customers to incorrectly associate their products or business with those of another trader, or person.
Copyright © 2000 McGraw-Hill Australia