Commonwealth Consolidated Acts

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TRADE PRACTICES ACT 1974 - SECT 74C

Actions in respect of false descriptions

             (1)  Where:

                     (a)  a corporation, in trade or commerce, supplies goods manufactured by the corporation to another person who acquires the goods for re‑supply;

                     (b)  a person (whether or not the person who acquired the goods from the corporation) supplies the goods (otherwise than by way of sale by auction) to a consumer by description;

                     (c)  the goods do not correspond with the description; and

                     (d)  the consumer or a person who acquires the goods from, or derives title to the goods through or under, the consumer suffers loss or damage by reason that the goods do not correspond with the description;

the corporation is liable to compensate the consumer or that other person for the loss or damage and the consumer or that other person may recover the amount of the compensation by action against the corporation in a court of competent jurisdiction.

             (2)  Subsection (1) does not apply if the goods do not correspond with the description referred to in that subsection by reason of:

                     (a)  an act or default of any person (not being the corporation or a servant or agent of the corporation); or

                     (b)  a cause independent of human control;

occurring after the goods have left the control of the corporation.

             (3)  A corporation is not liable to compensate a person for loss or damage suffered by the person by reason that goods do not correspond with a description unless the description was applied to the goods:

                     (a)  by or on behalf of the corporation; or

                     (b)  with the consent of the corporation, whether express or implied.

             (4)  If the goods referred to in subsection (1) are supplied to the consumer by reference to a sample as well as by description, it is not a defence to an action under this section that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description.

             (5)  A supply of goods is not prevented from being a supply by description for the purposes of subsection (1) by reason only that, being exposed for sale or hire, they are selected by the consumer.



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