11.2 The impact of fair trading legislation
All states and territories have enacted fair trading legislation that mirrors Part V of the Trade Practices Act 1974 ; and businesses have to comply with the rules and regulations set out in the legislation. If they choose to exceed these legislated behaviours, they will exhibit service excellence. Knowledge of some of the issues addressed by the legalisation should assist you to be a better service provider. Knowledge of the legislation also results in more informed and "wiser" customers.
The presence of both state/territory and Commonwealth legislation means that topics apply to all types of business operations - from multi-national corporations to a sole owner or operator of a small business. Fair trading legislation applies to:
- companies and their employees
- partnerships
- sole traders.
It covers a wide range of issues, including:
- misleading or deceptive conduct
- offering gifts and prices
- communication - the key to success
- false representation of good or services
- unconscionable or unreasonable conduct
- unsolicited goods and bogus advertising
- unsolicited credit and debit cards
- bait advertising/discount voucher schemes.
Moreover, the legislation can be applied across a wide geographical range, depending on where contracts originate. For example, if a person in Hong Kong contracts for a service to be provided by an organisation which operates from New South Wales and the customer is unhappy with the service provided, the complaints will fall within the provisions of the Australian Act. The customer can seek redress under Australian legislation, since the contact originated from an Australian state or territory.
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