Use the IRAC problem solving method. Question 1 – Australian Consumer Law Natura

Question

Use the IRAC problem solving method.

Question 1 – Australian Consumer Law         

Natural Ice Cream Co is a company that advertises its ice cream as ‘all natural’, made in the Barossa Valley (in South Australia), and from milk produced by Australian cows.

It has been discovered, that actually the ice cream is made in Victoria, 1000’s of kilometres away from the Barossa Valley. And although most of the ingredients in the ice cream are natural they do use a chemically flavoured vanilla as natural vanilla is too expensive. Most cows were bred in Australia but recently some have been imported from Indonesia.

Using relevant legal principles, discuss whether Natural Ice Cream Co has breached section 18 of the Australian Consumer Law and what remedies may be available.

Explanation / Answer

The issue here is deception, where Natural Ice Cream Co uses uses a deceptive device by changing the origin of the materials collected and products made. According to the rule which is Australian Consumer Law, section 8 States that there is no pecuniary penalty for the deception, however if that deception caused any damage to the end user, the company or individuals could be fined. So, of this rule is applied here, the company cannot be fined unless there is an user of that company's product raises a complaint. In my opinion as the conclusion, companies should be punished for making false promises and false claims mislead the consumers using emotional attachments. Although there is no physical harm done, when the consumer learns that the company cheated the customer, the customer will be heavily disappointed.

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