Navigation path

Home

Is it unfair?

How to tell when a commercial practice is unfair

The burning question for consumers will undoubtedly be: "How can I tell when a particular commercial practice is unfair?"

Other cases: the "safety net" clause

Two defining criteria are used to identify an unfair commercial practice which is not caught under the specifics of misleading or aggressive practices. In this instance, a commercial practice is regarded as unfair - and prohibited - if it meets the following two, cumulative criteria:

1. The practice is contrary to the requirement of professional diligence

Professional diligence is roughly equivalent to professional ethics. A business person is expected to follow honest market practices and/or general principles of good faith in his or her field of activity.

2. The practice materially distorts or is likely to materially distort the average consumer's economic behaviour.

This means using a commercial practice to impair the consumer's judgement with the result that the consumer decides to purchase a product or service that he or she otherwise would not have purchased.