Mike visits an electronics store having seen an advertisement of a computer at a very attractive price.The salesperson shows him the computer willingly and describes the attributes.With a whisper,the salesperson says "I'm not supposed to point this out,because the manager would kill me,but even though this computer is cheaper,its a real dog.No quality.This computer over here,while it costs more,is much more value for money." Mike is impressed at the forthrightness and the fact that the employee is taking a risk to help him make a good choice He buys the computer.The following week he notices advertisements for the model of computer he has just purchased,at prices between 20 percent and 30 percent below the price he paid.
-The store,by virtue of the actions of its employee,is in violation of the federal Competition Act.

Question

Quizplus · Accepted Answer

The salesperson's actions could be considered misleading or deceptive marketing practices, which are prohibited under the federal Competition Act. The Act aims to prevent false or misleading representations to consumers.

Mike Visits an Electronics Store Having Seen an Advertisement of a Computer