1.8: The need for consumer protection

What is the primary characteristic of "bait and switch" advertising?

• Advertising products at enticing prices

• Offering special deals to consumers

• Sending unordered goods through the mail

• Providing false information about product quality

What is the main issue with "bait and switch" advertising?

• It involves sending unordered goods

• It uses deceptive words in advertisements

• It quickly runs out of advertised products

• It directs customers to higher-priced items

What is referral selling?

• Sending unordered goods through the mail

• Offering special deals to consumers

• Supplying potential customer names to the trader

• Providing false information about product quality

According to the Competition and Consumer Act 2010, what happens if you receive unordered goods?

• You must pay for them immediately

• You must use the goods within one month

• If you write a letter, the goods become your property after three months

• If you write a letter, the goods become your property after one month

What is the risk associated with providing your bank account details in a "get-rich-quick scheme"?

• Receiving a percentage of money from another country

• Losing money to scammers

• Earning quick and easy money

• Receiving special prizes

What is the primary characteristic of a "pyramid scheme"?

• Joining with the opportunity of earning quick and easy money

• Providing false information about product quality

• Supplying potential customer names to the trader

• Scratching prize coupons

Why do most participants in a "pyramid scheme" typically lose their money?

• Because they receive free gifts

• Because they supply their bank account details

• Because they recruit new members

• Because it's an unsustainable scheme where only a few at the top profit

What is the primary role of the ACCC?

• To promote international trade agreements

• To oversee environmental regulations

• To administer and enforce the Competition and Consumer Act 2010 and other legislation

• To manage foreign relations with neighboring countries

How does misleading advertising affect consumers?

• It offers products at reduced prices

• It provides accurate information about products

• It creates a false impression of the product's nature or quality

• It guarantees product availability at all times

When does referral selling become illegal?

• When the friend of the customer does not buy from the business.

• When the promise of a 'special deal' is not upheld.

• When the customer initially engages with the business.

• When the business denies the customer an exchange.