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Issue

The main concern is whether Ella can receive a refund and $10,000 from Invest Wizard despite the cancellation of their previous offers in a new advertisement. She purchased the software based on the guarantee given in the ad that she would make a 30% profit within six months. We need to determine if Ella’s reliance on this advertisement constitutes deceptive conduct under Australian Consumer Law (ACL) and if InvestWizard’s subsequent marketing renders their initial offer invalid. In particular, we need to determine if Ella is entitled to remedies like a refund and reimbursement despite any later changes made to the offer, and whether the promises made in the first advertisement constituted misleading or deceptive behaviour.

Rules

The Australian Consumer Law (ACL) strictly prohibits any individual from engaging in deceptive or misleading trade practices, as outlined in Section 18. Making false statements about future prospects, such as profitability, is considered a violation of ACL’s Section 29(1)(g) if the person lacks reasonable justification. An agreement formed through offer and acceptance is legally binding based on contract law principles, assuming there is an intent to create legal obligations and clear terms are established and communicated by both parties (CLIA 5.2.3). Ads that make specific claims or guarantees must have a legitimate foundation, as demonstrated by case law such as ACCC v. TPG Internet Pty Ltd (2013), and breaking such promises may be considered misleading or deceptive behaviour (Ozgoli, 2022).

Furthermore, an offer and acceptance agreement is enforceable under the rules of contract law, provided that both parties want to incur legal duties and that the conditions are agreed upon and conveyed (Ozgoli, 2022). A unilateral contract is made when one party does more than just promise something in exchange for particular performance. This may be important to examine while assessing the responsibilities resulting from InvestWizard’s marketing from that promised a 30% profit in just six months. Consequently, these legal principles and their implications for the original representations, the rights of consumers under the ACL, and contract law must be taken into consideration when evaluating the legality and enforceability of any future modifications or cancellations of the offer.

Conclusion

Ella’s case shows how the creators of InvestWizard clearly relied on a deceptive advertisement and therefore broke their contract. Ella, a teacher set to retire after forty-five years of teaching, made prudent investments with her funds, believing the advertisement’s audacious claim of a thirty percent return on her investment in as little as six months. Even though Ella followed the software’s instructions to the letter, she was left without money and lost faith in the promoted goods. The creators of InvestWizard are nonetheless liable for their original promise and any associated legal responsibilities despite their attempted cancellation of earlier promises in a subsequent advertisement (Wong et al., 2017). Ella is therefore entitled to a full refund of the purchase price as well as $10,000 in compensation, and her claim is not only justified but also necessary to make up for the losses she suffered as a result of the deceptive actions of InvestWizard’s creators. This case emphasizes the value of accountability and openness in advertising techniques as well as the legal safeguards that the Australian Consumer Law affords to customers like Ella.

References

Ozgoli, A. (2022, August 3). Analysing the effectiveness of Australian laws in protecting consumers from misleading social media influencer advertising.

Figshare.mq.edu.au. https://figshare.mq.edu.au/articles/thesis/Analysing_the_effectiveness_o
f_Australian_laws_in_protecting_consumers_from_misleading_social_media_influencer_advertising/20422509

Wong, A., Chapple, E., Baumfield, R., Copp, R., Cunningham, R., & Harpur, P.
(2017). Company law :an interactive approach. John Wiley & Sons.

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