Are there rules about how my company can market its products?
As part of my business model I'll be providing new LED lighting products to the public. They are a new technology and can save households a lot of money. However I've heard that there have been a lot of problems in the way these lights have been marketed by other companies. What should I watch out for?
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
- One of the obligations of managing a company is to ensure that your company complies with all relevant laws. This includes the Australian Consumer Law.
- There are specific laws against misleading or deceptive conduct in that legislation. These particularly concern making false claims about products.
- When selling products you must ensure that the statements you make about the product performance and quality are not likely to mislead or deceive. There are significant penalties in place for companies who mislead or deceive.
- You should also consider your business risk and long term customer base. If you make claims about a product that cannot be sustained it is unlikely that your business will grow.