Question

Question 1 – Australian Consumer Law        

Natural Ice Cream Co is a company that advertises its ice cream as ‘all natural’, made in the Barossa Valley (in South Australia), and from milk produced by Australian cows.

It has been discovered, that actually the ice cream is made in Victoria, 1000’s of kilometres away from the Barossa Valley. And although most of the ingredients in the ice cream are natural they do use a chemically flavoured vanilla as natural vanilla is too expensive. Most cows were bred in Australia but recently some have been imported from Indonesia.

Using relevant legal principles, discuss whether Natural Ice Cream Co has breached section 18 of the Australian Consumer Law and what remedies may be available.

Answer 1

According to Section 18 of the ACL, there is a prohibition for any person to mislead and do deceptive practice in business or trade. it is not limited to services &goods but it contains the vast range of financial code of conducts.

Different conduct types:

• Statements that tells about the future

• Passing the facts and data.

• Telling nothing about the conduct

Remedies in section 18 of the ACL:

• Damages: according to Section 236 person who faced damage or loss can recover his amount of that loss or damage.it must be taken within 6 years of damage occurred.

• Injunction: injunction refers to an order of the court which needs the individual to do something from taking action for something

• Compensatory orders: according to Section 237 court contain a capacity to make the order to the guilty that he give compensation to the suffered individual according to his/her claim.

Natural ice cream co. Is misleading costumers by showing wrong information about its products.

Hence it is violating the section 18 of the ACL bypassing the facts and data about its products.