Consumer protection
CONSUMER protection laws exist primarily to ensure that consumers are protected against unfair trade practices. Undoubtedly, there are a handful of unscrupulous traders in the Fijian market who tend to take advantage of vulnerable Fijians.
Fijian Competition and Consumer Commission (FCCC) has noted that many businesses in Fiji use terms such as “free” in their advertisements while marketing their products and services. Businesses should be particularly careful when using the term “free”. The idea of getting goods or services without charge can create keen interest in consumers as they usually think of “free” as being absolutely free — a justifiable expectation.
Simply, businesses may get into trouble while using the word 'free' if they fail to properly explain the magnetism of the word in any of their advertisements or promotions. Further, businesses must reveal the complete truth in their advertisements and promotions, including any conditions that the consumer must comply with in order to obtain the “free” item.
Example: If a business makes a “buy one, get one free” offer, but raises the price of the first item to mainly cover the cost of the second (free) item, such conduct by the business would likely be misleading or deceptive in nature.
Whether a conduct is misleading or deceptive will depend on the factors surrounding the particular conduct. This means that all relevant circumstances will be taken into consideration, such as the entire advertisement, product label or statements and claims made by a business.
While assessing and investigating such matters, FCCC also takes into account other factors, such as, fine prints, contradictory statements, unsubstantiated claims, images that obscure or alter written statements pertaining to the product or service by the businesses. Advertising techniques bait advertising and special offers
Under the consumer protection law, bait advertising is defined as the practice of offering products for sale by a business at a low price to attract consumers. Bait advertising is illegitimate form of advertising under the FCCC Act 2010. Under this advertising scheme, businesses advertise that the products or services are offered for sale at a discounted price, however, businesses fail to keep such products in reasonable quantities during the sales period.
If businesses have knowledge that the particular product is not available in reasonable quantities, businesses should not advertise that particular product for sale. However, if businesses have products in reasonable quantities and during the sale period the product finishes, business must clearly state in writing to inform the consumers that the particular product has finished.
If the business is advertising range of products at special offers, the business must clearly mark the products which are offered for sale at special price. This is to avoid any confusion by the consumers. If the special or discounted price of the product is just for a day or two, businesses must outline this condition to the consumers clearly.
If there is a reasonable chance the offer will not be available at the advertised price, in such circumstance the businesses may be in breach of the Fijian Competition and Consumer Commission Act 2010 (FCCC Act 2010).
Example: A retailer runs an advertisement stating number 20 chicken at a price of $15 for a week-long sale. The retailer usually sells about 4500 chicken every week. The retailer only stocks 200 chicken at the advertised price and refuses to take customer orders. When customers attempt to buy the chicken at the advertised price, they are told it is out of stock and instead offered another number chicken which is expensive i.e. $20. This is likely to be bait advertising as the retailer does not have a reasonable supply of advertised chicken.
Businesses must keep all the records for such sale for a period of seven (7) years and must furnish all the records to FCCC upon request for verification and assessment.
Businesses must undertake due diligence when engaging in above mentioned sale and advertising techniques. If any business identifies that their competitor has engaged in such illegitimate form of advertising and sale, they may notify FCCC of the issue.
This is a weekly contribution from the FCCC. For any queries please contact them at:
Ground floor, Employers Hub building, 42 Gorrie St, Suva, Fiji. T: (679) 892 1991 Website www.fccc.gov.fj