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• Advertising
• Misleading advertising
• Bait Advertising
• Misleading prices
• Gifts and prizes

Advertising

Advertising your products can be a powerful inducement for customers to buy. If those customers are happy, they can become an important advertisement for your business.
Advertising can improve your business by making people aware of the products and services that you provide. Many companies advertise regularly to:

• build an image for their business
• promote special offers
• increase sales.

Advertising can be in the form of:

• mass media (eg. television, radio, magazines, newspapers)
• signage in your place of business advertising a particular product or service
• outdoor advertising (eg. bus shelters, taxis)
• flyers, brochures.

You should think carefully about any advertising that you do as it can be expensive, and advertising mistakes can be costly. Be careful not to tell your customers the wrong information or portray a message that could be taken in another way, otherwise you may end up developing a poor perception of your business.

There are laws about how you should and shouldn't advertise. Make sure that you understand what the boundaries are before you spend large amounts of money. Severe penalties apply for false and misleading advertising.

Ensure all advertising materials about a product or service are accurate to allow consumers to make a well informed decision.

Misleading advertising

Misleading advertising not only is against the law but will antagonise potential customers. The simplest way to avoid this situation is to tell the truth about the products you are advertising.

• Whatever you are selling, make sure your descriptions are accurate regarding standard, quality, value, style or model, spare parts and repair services.
• Tell potential buyers if the goods have already been used (for example, as ‘demo' models).
• Don't claim endorsements, sponsorships or associations with organisations that you don't have.
• Make sure that you and your staff know your products so you can describe or demonstrate them confidently.
• All staff should be able to provide accurate quotes and prices. Remember, what staff say and do could bind you to a sale.

Bait Advertising

Bait advertising is where a trader advertises only a limited number of goods to entice customers to the premises, knowing that the number for sale will not meet anticipated demand. It is your responsibility to have adequate supplies at the time of advertising or to make it clear that there is a specific number available.

What is considered a reasonable number will depend on the type of item you are offering on special and on the length of the sale; for example, there will be a difference in definition of “reasonable” between washing machines and handkerchiefs.

If the offer is for a limited period, make this quite clear in your advertising. And if stocks are genuinely low, such as in a clearance sale, say so.

If you find that the demand is greater than you anticipated, you could see whether your supplier has extra stock that you could offer to your customers at the same price at a later date.

Or, if you and the customer agree, you could provide an equivalent product at the same price.

• Whatever you are selling, make sure your descriptions are accurate regarding standard, quality, value, style or model, spare parts and repair services.
• Tell potential buyers if the goods have already been used (for example, as ‘demo' models).
• Don't claim endorsements, sponsorships or associations with organisations that you don't have.
• Make sure that you and your staff know your products so you can describe or demonstrate them confidently.
• All staff should be able to provide accurate quotes and prices. Remember, what staff say and do could bind you to a sale.

Misleading prices

Having more than one price on a product can be misleading and you could end up in a conflict with customers.

Remember that you could damage your reputation by telling only half the story. It is in your best interests to follow the law and state the full price of a product.

GST information can be obtained from the following websites:

Australian Taxation Office

Australian Competition and Consumer Commission

What if you've made a mistake?

If you find a mistake in your advertising, you should immediately advise your customers, publicise a correction and notify the Office of Consumer and Business Affairs on (08) 8204 9777 or the nearest country office on 131 882.

For more information, see Multiple Pricing.

Gifts and prizes

If you offer gifts or prizes to entice customers to a special sale or promotion, make sure you actually supply them as offered.

You could be in trouble if you:

• do not disclose special terms and conditions to be met before the gift or prize is available
• disguise the cost of the gift or prize by building it into the selling price of the advertised goods
• supply gifts or prizes substantially different from those promised
• do not supply gift or prize at all
• do not supply the gift or prize within the specified time, or if no time was specified, within a reasonable time.

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