News and Events

Marketing and advertising campaigns are essential to today's business owner to attract customers to their business for the provision of services or retail of goods. Occasionally business owners are prosecuted for misleading advertising.

Ensuring all important conditions are included and are consistent throughout all materials in the advertising campaign is important to avoid a breach of the Fair Trading Act 1986.  Adequate disclosure of conditions upfront is critical, especially price affecting conditions and/or any restrictions or persons to whom an advertised offer is available to.

In the recent decision of Commerce Commission vs Oaks Hotels and Resorts NZ Limited (2008) DCR406 the defendant misled customers about the price and nature of accommodation.  Apartments were advertised "$79 per night subject to conditions applying".  The nature of the conditions were not specified in the advertisement.  The price was only available for a minimum 28 day stay.  The Commission noted that this was not satisfactory.

Small print in advertising can be used to elaborate the main message.  Small print can never contradict the main message.  Any conditions which qualify or limit an offer should be shown in bold in the body of the advertisement so it cannot be overlooked.  If the small print contains a condition not shown else where in the advertisement, the advertisement is likely to be in breach of the Fair Trading Act 1986. 

There are special provisions relating to television whereby the print must be legible and be displayed long enough to read.

Adequate disclosure of conditions up front is critical at the outset.  A misleading impression cannot be corrected on a website or at point of sale or elsewhere.  Care needs to be taken by the business owner to ensure that no misleading impressions are given.

When considering your advertising campaign, ensure that you consider it from the position of an innocent consumer as to whether it is likely to mislead.  If in doubt consult with your Lawyer for advice.

Please remember, this information is designed as a guide only and shouldn't replace the advice of you legal professional.  We welcome your comments: chris.peddie@awslegal.com