A
trade description involves the supply of information
regarding products and services that is/are traded
in the course of business. The law requires all
information provided, relevant to the nature of
business being carried and the products and services
relevant should be clearly mentioned and made
public is accurate and not misleading.
The Trade Descriptions
Act 1968 governs the description of all products,
services and businesses. The rules require the
communication of such information to be verbal
or written. A written can be in the form of an
advertisement, brochure, invoice or an order form.
Advertisements may contain pictures, images and/or
graphics for appropriate pictorial representation
of the product or service.
Should a trade
description be supplied incorrectly there are
serious penalties. The Act specifies that it is
an offence where
-
false or misleading description has been provided
in verbal or written form or by action performed
prior to the supply of products and/or services;
-
there
is an offer for sale for goods for which false
or misleading information is provided - an
exhibition of goods for supply in public or
being in possession of such goods for the
purpose of supplying it is considered to be
an offer for sale and therefore falls under
the ambit of the Act.
The
Trade Description Act considers the supply of
the following information for the purposes of
trade description.
-
the
dimension, guage and quantity;
-
the
work done on the product to place in a marketable
position;
-
the
composition or ingredients of the goods;
-
the
usability or the manner in which it can be
best used;
-
other
information not disclosed under previously
mentioned points;
-
test
results, if required by the nature of the
product for supply;
-
the
approval or certification of authorised person(s),
where required;
-
place
or date of manufacture;
-
the
name of the person(s) who have produced the
goods;
-
product
history, including ownership title and usage.
Provided that
a trader had committed an offence by mistake or
relying on a piece of information provided which
was not known to be false by the trader or the
occurrence of an event beyond his/her control.
Further, the trader must also be able to exhibit
that all necessary precaution was taken to ensure
that there was no offence committed on his/her
own part.
Where information
is reliable but has already been tampered with
before providing it, the trader can disclaim liability
from a trade description offence. The trader should
provide a disclaimer for any information or description
which is the based on available information and
that the trader is not liable for any damages
or loss which may be caused that is beyond the
trader's control. |