New Zealand Consumer Law Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

A misleading representation according to the Fair Trading Act is defined as a statement that is false and leads to wrong conclusions. This concept is central to consumer protection, as it helps maintain fair trading practices by ensuring that consumers are not deceived by inaccurate information.

In the context of the Fair Trading Act, a misleading representation can occur in various situations, including advertising, promotions, and other forms of communication between businesses and consumers. When a statement is false and causes the consumer to form an incorrect impression about a product or service, it can be legally actionable.

This definition protects consumers by ensuring that they can make informed decisions based on truthful information. It serves to not only promote fair competition among businesses but also to safeguard consumer rights.

The other choices do not accurately capture the definition as outlined by the Fair Trading Act. For instance, a statement that is difficult to understand does not inherently mean it is misleading; it may simply require clarification. Similarly, any statement made in advertising is too broad, as not all advertising statements are misleading. Furthermore, a subjective opinion about a product does not constitute a misleading representation unless it is presented as a fact rather than an opinion.