UNFAIR TRADE PRACTICES
Examples of UTPs
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
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
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
MISLEADING ADVERTIZING
• Regarding the performance, efficacy, safety and
quality of a product e.g. cigarette smoking,
pharmaceuticals, holiday packages
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
EFFECTS OF UTPs ON CONSUMER
WELFARE
• Sub optimal decisions
• Damage to life and property
• Misallocation of resources
• Bankruptcy / insolvency
• Loss of income