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Semester One 2019

Examination Period

Question 3

Schnuppy is preparing advertising programs for the diabetic cola and proposes to use the following advertisements:

(a) “Scientifically proven to free diabetics of excess sugar levels - become diabetic free!”  When you question Schnuppy’s marketing manager you are told no scientific  studies have been completed;      (5 marks)

(b) Certified by the Diabetics Association of Australia as beneficial to diabetics. The product is being examined by the Diabetic Association of Australia but no certification is likely for a period of nine months after the launch. (5 marks)

(c) Schnuppy uses the image of Tom Hanks (a prominent actor and type two diabetic) in an article about diabetes published next to the print media advertisements. Tom Hanks becomes aware of the advertisement on its publication and is annoyed as he has not been approached and is known for supporting the Diabetes Association of America. (5 marks)

(d) Schnuppy has included on the label the words: “Made in Australia from 97 per cent Australian ingredients.”  This is incorrect as the syrup is manufactured overseas and the source of the remaining ingredients varies depending on availability of supply.  (5 marks)

Answer this question on the basis of Section 29 of the Australian Consumer Law. Do NOT answer this question on the basis of Section 18 of the Australian Consumer Law. (5 + 5 + 5 + 5 = 20 marks)