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First Principles of Business Law |
| The regulation of undesirable business practices |
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5. Protection against unfair business practices |
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5.7. Unsolicited cards |
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Pixel Palace is a large company that sells electronic products in many retail outlets that it owns throughout Australia. To promote customer loyalty and increase sales, A, the managing director of Pixel Palace, develops a Pixel Customer Card which if produced by a customer when buying goods at a Pixel Palace outlet, entitles them to a 5% discount and the right to pay for the goods over six months in installments at current rates of interest. A sends a card to each of its known customers, inviting them to activate the card by using it to make a purchase worth more than $100 within the next six weeks. |
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(a) Sending a card that can be used as a credit or debit card to a person who has not asked for it in writing is unfair conduct that is prohibited by the ACL, even if the person to whom it is sent must do some specified thing to show that they accept and intend to use the card. (b) Sending a card that can be used as a credit or debit card to a person who has not asked for it in writing is unfair conduct that is prohibited by the ACL, unless the person to whom it is sent must do some specified thing to show that they accept and intend to use the card. |
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