Fine print in advertisements

Written on the 30 May 2014 by Macmillans Waller Fry - Accountants in Maitland

The High Court has reinforced the importance for businesses in taking care when advertising their products and services.

In June 2012 the Australian Competition and Consumer Commission (ACCC) was successful in obtaining orders in the Federal Court penalising TPG for engaging in misleading and deceptive conduct in their advertisements by putting important information in the fine print.

Businesses should consider implementing a four-step process for determining whether an advertisement is misleading:

  1. Identify the ‘dominant message’ or ‘headline claim’ of the advertisement
  2. Determine whether the dominant message, without any qualification, conveys a misleading impression
  3. If it would be misleading, identify whether the advertisement also contains any qualification or condition which corrects the misleading impression given by the dominant message
  4. Consider whether the qualification or condition is given sufficient prominence in the advertisement so that an ordinary and reasonable consumer would notice the qualification and be disabused of the misleading impression from the dominant message.

The final step requires people to use their own common sense and judgement in determining whether the advertisement is misleading.

When the High Court considers misleading conduct it takes into consideration a variety of factors, including:

  • the extent to which the ‘dominant message’ is misleading
  • the nature of the product being advertised
  • the nature of the target audience of the advertisement
  • the medium in which the advertisement is placed

Author: Macmillans Waller Fry - Accountants in Maitland

 

Long term tax-effective Investments

Determining where to invest requires multiple factors to be taken into consideration. One such factor may be tax efficiency. The tax charged on income from a tax-effective investment is less than the individual’s marginal tax rate. Superannuation The government provides incentives to save t...
Read More...


Salary Sacrificing for your Super

One of the most effective ways to add to your super balance is through salary sacrifice. Salary sacrifice involves the employee agreeing to exchange a portion of their salary (before tax) for an increase in superannuation contribution by their employer. Contributions made through salary sacrifice...
Read More...

associations

 

 

Who we are

 

What we do

 

Macmillans - Accountants

Address:40 Church Street

Maitland NSW 2320

Phone:02 4933 4444

Fax:02 4933 7781

Email

 

Online PaymentContact Us