HN Hub - Do you know what is misleading and deceptive?

1. Misleading and deceptive conduct includes:

Conduct that leads, or is likely to lead, a person into error

Conduct that leads a person to believe something that is false

Statements, acts, omissions or silence (that is misleading and deceptive)

All of the above

2. If what I said or did mislead or deceived a person, I may be liable for a breach of the misleading or deceptive conduct provisions, regardless of whether or not I intended to mislead or deceive that person.

True

False

3. The regulator responsible for enforcing the misleading or deceptive conduct laws is:

(Select all that apply)

ASIC, if it relates to financial services

ACCC, if it relates to goods and services other than financial products and services

APRA, it if relates to misrepresentations about money

The OAIC, if it relates to information

4. If you are unsure, it is best to stay quiet – silence is never misleading.

True

False

5. Misleading and deceptive conduct is subject to an objective “reasonable person” test. That is, a person has not engaged in misleading and deceptive conduct just because someone was misled – the conduct must have misled a reasonable person in the class of people to whom the conduct was directed.

True

False

6. There are provisions prohibiting misleading and deceptive conduct in relation to financial services in the Corporations Act and the ASIC Act.

True

False

7. Some strategies to prevent misleading and deceptive conduct include:

(Select all that apply)

Never express any opinions or make any predictions – stick to facts only

Document and clearly explain the reasonable grounds which underpin any opinion, representation or prediction communicated to a client

Implement a marketing review process to ensure all promotional material is reviewed before it is published

Intention matters – provided you do not make representations you know to be incorrect, and won’t breach the misleading and deceptive conduct provisions

8. AFCA can award compensation to a person who complains about relying on a financial firm’s misleading conduct. In determining the appropriate compensation, AFCA will consider:

The steps the person took because of the alleged misleading conduct

Any cost of obligations the person incurred because of their reliance on the alleged misleading conduct

Opportunities the person missed because of their reliance on the alleged misleading conduct

All of the above