whether the weaker party could understand any documents used.whether the stronger party put any conditions on the weaker party that were not reasonably necessary to protect the stronger party’s legitimate interests.the bargaining strength of the parties compared against each other.When deciding whether behaviour is unconscionable, the law says that the courts may also consider a range of other factors, including: don’t feel confident using some basic technology, such as the internet or smartphones.Ĭonduct may also be unconscionable in other situations that don’t involve knowingly targeting these kinds of consumers.don’t speak English as their first language.have difficulties understanding and using basic financial skills.are too young to make informed decisions.are going through something difficult like the death of a loved one, domestic or family violence, homelessness, or the impact of a natural disaster.For example, if the business knowingly targets consumers who are experiencing vulnerability, which may be people who: There must be something extra that makes it especially harsh. There is no precise legal definition of unconscionable conduct as it is a concept that has been developed and considered on a case-by-case basis by courts over time.Ĭourts will generally consider whether the conduct is against the morals and principles of the community.įor courts to decide that behaviour is unconscionable, it’s not enough for it to be unfair. Under consumer law, businesses must not act unconscionably towards consumers or other businesses. Unconscionable conduct is behaviour so harsh that it goes against good conscience. For example, a meal kit subscription service could legally offer an existing subscriber a voucher in return for them getting a friend to subscribe via a referral link. If the discount depends on the business making a sale to one or more of the friends, this is against the law.īusinesses can make ‘refer a friend’ offers to existing customers. However, the customer must receive the discount whether or not the friends go on to buy anything. When making a new sale, whether to an existing customer or a new customer, a business is allowed to give the customer a discount in exchange for contact details of the customer’s friends. Whether these referral offers are legal depends on the situation. Referral sellingīusinesses often try to increase their sales by encouraging consumers to refer their friends. Pyramid schemes can sometimes involve selling a token product or service, but the only real way people can make money in a pyramid scheme is by recruiting other people rather than by selling the product or service. In multi-level marketing schemes, people in the scheme make money from selling a genuine product or service. In pyramid schemes, people in the scheme only make money from the recruitment of other people. Pyramid schemes are different to multi-level marketing schemes. only a small number of people at the top of a pyramid scheme are likely to receive any real financial benefits from it. people are promised payment for recruiting others to the scheme (a recruitment payment).people must pay to join (a participation payment).It’s against the law to participate in, or to persuade someone to participate in, a pyramid scheme. See Telemarketing and door-to-door sales and What debt collectors can and can’t do for more information. The use of physical force or threats of force is also a serious criminal law issue and should be reported to your local police. This behaviour is against the consumer law when it’s used to sell products and services, and to collect debts. It could include unwanted persistent phone calls or over-the-top sales methods. Undue harassment means unnecessary or excessive contact or communication with a person, to the point where the person feels intimidated, tired or demoralised. It could also include exploiting known facts, circumstances or statements made by a consumer to force them to do something. It’s against the law for a business to use physical force, coercion or undue harassment against consumers.Ĭoercion can mean using force, or threats of force, to restrict someone’s choice or freedom to act. See Not receiving products and services that are paid for for more information. Not delivering products and services that are paid forīusinesses must not accept payment for products or services that they don’t intend to supply. See False or misleading claims for more information. It’s against the law for a business to make false or misleading claims. False or misleading claimsĬlaims that businesses make about their products or services should be accurate, true and based on reasonable grounds. Consumer law protects consumers and small businesses against unfair terms in
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