Question

Question 2:
‘Fresh and Organic’ is a local shop and they advertise in the local newspapers that they sell vegetables that are fresh from their own farm and that all produce sold is 100% organic. The shop is very popular among the customers who love healthy eating even though they pay higher prices for any item they buy from ‘Fresh and Organic’. However, a disgruntled employee of the shop informed the Australian Competition and Consumer Commission (ACCC) that many products sold at the shop are neither ‘fresh’ nor ‘organic’ as claimed.

Upon an investigation by the ACCC, it is revealed that in fact almost 30% of the fruits are frozen for some time before they are sold. They also find that chemical fertilisers are used for certain types of vegetables and they also use pesticides occasionally as well.

Required:
Identify and explain the most relevant provision of Australian Consumer Law that the ACCC can rely on to take an action against the shop. Discuss at least one case briefly that may be relevant.

Answer 1

The Australian Consumer Law sets out consumer rights that are called consumer guarantees. These include your rights to a repair, replacement or refund as well as compensation for damages and loss and being able to cancel a faulty service.

1.CONSUMER GUARANTEE - Under the Australian Consumer Law, when you buy products and services they come with automatic guarantees that they will work and do what you asked for. If you buy something that isn't right, you have consumer rights.

2.REPAIR,REPLACE,REFUND - If a product or service you buy fails to meet a consumer guarantee, you have the right to ask for a repair, replacement or refund under the Australian Consumer Law. The remedy you're entitled to will depend on whether the issue is major or minor.

3.CANCELLING OF SERVICE - Under the Australian Consumer Law, you have certain rights to cancel a service.

4.COMPENSATION FOR DAMAGES - You can seek compensation for damages and losses you suffer due to a problem with a product or service if the supplier could have reasonably foreseen the problem. This is in addition to your repair, replacement or refund rights.

5.WARRANTIES - Under the Australian Consumer Law, automatic consumer guarantees apply to many products and services you buy regardless of any other warranties suppliers sell or give to you.

6.When things go wrong with products or services you bought before 1 January 2011, you may still have rights under the previous consumer protection law called the Trade Practices Act.

Riddoch Trading Pty Ltd, trading as the Union Dairy Company (UDC), has paid a penalty of $10,500 after the ACCC issued it with an infringement notice for allegedly failing to comply with its publishing obligations under the Dairy Code.

The Code requires dairy processors to publish standard form milk supply agreements on their website by 2.00pm on 1 June each year.

The ACCC alleges that instead of publishing its exclusive supply agreement on its website, UDC required dairy farmers to fill in an online form with data such as herd size and current processor before they could access the agreement.