Problem

Recently a corporation has been advertising in women's magazines an electronic muscle stimulation product known as "Slendertone" stating that the product can: "tone and firm any party of the body with no effort by the user", "provide the user with the benefit of a workout without exercise", "reduce the user's body measurements by an inch or more" and "give the user, in 40 minutes per day, the equivalent of 300 general exercises." The product in fact does none of these things.

Advise the ACCC and affected consumers.

Questions to consider when answering given Problem:

Does the ACL apply?

Did the transaction take place in trade or commerce?

What sections of the ACL appear to be in breach?

In order to establish a breach of s 18 what has to be established?

Is the advertising likely to be misleading or deceptive or likely to mislead or deceive?

Does the advertising contravene s 29(1)?

What remedies are available to an individual consumer?

What remedies would the ACCC be likely to seek?