Fair Trading Act

Fair Trading Act

Truthful claims in product listings

  • Ensure all descriptions, images, and specifications are correct.
  • Do not exaggerate product performance or features.
  • Only use “guarantees” or “warranties” if they are genuine and backed by clear terms.
  • Avoid misleading comparisons with other products.

Info
Always check supplier information before publishing claims. You are responsible for the accuracy of your listings, even if the supplier provided the wording.

Pricing and promotions

  • Clearly display the total price, including GST (if applicable).
  • Do not inflate prices to make discounts appear bigger.
  • Only use “limited time” or “special offer” language when it is factually true.
  • Delivery and additional charges must be shown upfront before checkout.

Alert
Misleading pricing practices, such as “was/now” discounts based on inflated prices, are breaches of the FTA.

Reviews and endorsements

  • All reviews must reflect genuine customer experiences.
  • You must not post fake positive reviews or suppress negative ones.
  • Do not offer incentives in exchange for only positive reviews.
  • If you provide a free product for review, this must be clearly disclosed.

Warning
Kapsule monitors review activity. Sellers found manipulating reviews risk suspension or delisting.

How to stay compliant: Practical steps

  1. Audit your listings – review titles, descriptions, images, and claims for accuracy.
  1. Check your pricing – ensure discounts and promotions are genuine and reflect real value.
  1. Monitor reviews – respond professionally to both positive and negative feedback, and never attempt to filter them dishonestly.
  1. Keep records – store evidence of supplier claims, promotional campaigns, and review policies in case of disputes.

Notes
A good practice is to schedule a quarterly compliance check across your listings and promotions.

FAQs

1: What happens if I accidentally post incorrect product information?

You should correct it immediately. Serious or repeated mistakes may lead to enforcement action.

2: Can I use stock images provided by my supplier?

Yes, but only if the images accurately represent the product you are selling. Do not use misleading photos that suggest features not included.

3: How can I promote discounts without breaching the FTA?

Make sure the discount is based on the actual price you normally charge. Keep records to show the original price was genuine.

4: Am I responsible for reviews written by customers?

You are not responsible for customer opinions, but you must not encourage or publish fake or misleading reviews.

5: What if another seller is breaching the FTA?

You can report it to Kapsule support for investigation. Protecting buyers and fair sellers is a shared responsibility.

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