Misleading premium claims

Corones, Stephen (2016) Misleading premium claims. Australian Business Law Review, 44(3), pp. 188-203.

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One powerful way for suppliers of goods to distinguish their product from those of their competitors and thereby establish consumer preferences is to make a premium claim in relation to them. Premium claims (sometimes referred to as credence claims) involve a representation of a premium or special quality that differentiates one product from another. It may be difficult for consumers to verify these claims. Suppliers who make premium claims for their goods will generally spend on advertising and selling to convey this information to consumers. If the supplier succeeds in influencing the tastes of consumers that its product is better or superior in some way to those of its competitors that will allow it to charge a premium price. Where such claims are false they result not only in consumer detriment, but also harm existing competitors by taking away market share and creating an artificial barrier to new entry. Since 2013, the Australian Competition and Consumer Commission (ACCC) has significantly increased its enforcement activity in relation to false or misleading premium claims. This article examines these developments.

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ID Code: 98467
Item Type: Journal Article
Refereed: Yes
Keywords: Consumer law in Australia, Misleading claims, Australian Consumer Law
ISSN: 0310-1053
Subjects: Australian and New Zealand Standard Research Classification > LAW AND LEGAL STUDIES (180000) > LAW (180100)
Divisions: Current > Research Centres > Commercial & Property Law Research Centre
Current > QUT Faculties and Divisions > Faculty of Law
Current > Schools > School of Law
Copyright Owner: Copyright 2016 Thomson Reuters (Professional) Australia Limited
Deposited On: 30 Aug 2016 01:39
Last Modified: 02 Sep 2016 18:14

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