Why should you obey fair trading laws? Well, the difference between complying with consumer protection and fair trading laws, and not complying, can be significant. It doesn't matter what size your business, big or small, non-compliance can result in fines, product recall, refunds, remedial advertising and civil claims.
There are fundamental expectations that customers are entitled to have about the products and services they buy, and it is the job of the fair trading commissions of this world to protect those expectations.
Take Heinz as an example. Big multinational food company. They bought a little Australian company formerly owned by a farmers' co-operative.
The packaging included words such as "Australian Grown" and "Australian Owned". Heinz is clearly not local to Australia. The regulator took action and, amongst other things, Heinz was ordered to 'donate' over $1m dollars worth of wrongly packaged product to charity.
That's a whole lot of pineapple!
You might have seen advertisements for companies promoting share trading programs. Any business promoting a product that is described as a product that will help people earn money immediately has some concerns. There are always people who expect things to work for them like magic, without any effort on their part. They are the people who come back with complaints and law suits if your product does not do for them what you said it would do.
You don't need to be spending your precious time defending lawsuits and handling difficult complaints, so be very careful how you describe your products in the first place.