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1. (a) That's right. B's statement that A's business is "100% Australian" is likely to constitute misleading conduct in breach of section 18 of the ACL because it is a statement that will cause his customers to misapprehend the true situation - that most of A's products are printed off-shore.

It does not matter whether or not B intended to mislead his customers - although that is also implied by the facts - because misleading statements under s18 need not be deliberately or negligently made.