UNFAIR TRADE PRACTICES

1. UNFAIR TRADE PRACTICES Examples of UTPs

2. FALSE OR MISLEADING REPRESENTATION These include falsely representing that: • Goods are of a particular standard, quality, grade, composition, style or model or have had a particular history or a particular previous use • Services are of a particular standard, quality, value or grade • Goods are new • Goods or services have a sponsorship approval, performance characteristics, affiliation, accessories, use or benefits they do not have • False representation • price of goods and services • availability of facilities for the repair of goods or spare parts for goods • the place or origin of goods • the need for any goods or service • the existence, exclusion or effect of any conditions, warranty, guarantee, right or remedy

3. UNCONSCIONABLE CONDUCT • This refers to imposition of unilateral charges and fees, which charges and fees have not been brought to the attention of the consumer prior to their imposition or prior to the provision of service e.g. in bank loan services

4. CONDUCT REGARDING PRODUCT SAFETY STANDARDS • This applies where: • Goods do not comply with consumer product safety standards • Goods have been declared to be unsafe and defective yet this information is not provided to the consumer • Goods have had a permanent ban imposed on them

5. MISLEADING ADVERTIZING • Regarding the performance, efficacy, safety and quality of a product e.g. cigarette smoking, pharmaceuticals, holiday packages

6. TIED SELLING • Consumers are forced to buy unwanted products when they only need one product e.g. tying the purchase of sugar to bread or cocoa • A rampant practice during the price control regime

7. EFFECTS OF UTPs ON CONSUMER WELFARE • Sub optimal decisions • Damage to life and property • Misallocation of resources • Bankruptcy / insolvency • Loss of income