OVERSELLING AND OVERBOOKING

A supplier may not accept payment for goods or services if they do not intend to supply the goods or provide the service offered.

Where a supplier commits to supplying goods or services or accepts a reservation for a specific time and date, for example, an airline ticket, the supplier is penalized if they fail to deliver on their agreement. They must then refund the consumer, with interest and compensation for costs directly linked to the breach. This does not apply if the supplier offered comparable (similar) goods or services and the consumer either accepts this or unreasonably turns it down. It would also not apply if the breach was due to circumstances beyond the supplier’s control and the supplier took reasonable steps to inform the consumer.

TRADE COUPONS, LOYALTY PROGRAMMES AND PROMOTIONAL COMPETITIONS

The Act sets out how promotional competitions, trade coupons and loyalty programs must be run. The offer must be genuine and available as advertised.

NEGATIVE OPTION MARKETING

A supplier may not create a sale or contract by advising the consumer that they are assumed to have accepted the offer if they do not advise that they are not taking it. Referral selling is also not allowed. A person may not offer a consumer a rebate or commission on a purchase on condition that they assist in getting further sales, for example, by supplying the names of other consumers.

CATALOGUE MARKETING – GETTING WHAT IS ORDERED

When a consumer buys something without having an opportunity to inspect the goods, for example, by telephone or from a catalogue, they can refuse to accept the goods if they do not match the description in “all material respects and characteristics”.