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Sch 1 (National Credit Code), s 154

False or misleading representations

In force
Volume 1Chapters 1 to 6 (sections 1 to 322)
Chapter 6Compliance and enforcement
Part 6-7AProduct intervention orders
Division 2Product intervention orders

154 False or misleading representations

Prohibition on making false or misleading representations

(1)

A person must not make a false or misleading representation in relation to a matter that is material to entry into a credit contract or a related transaction or in attempting to induce another person to enter into a credit contract or related transaction.

Civil penalty: 5,000 penalty units.

Offence

(1A)

A person commits an offence if:

(a)

the person is subject to a requirement under subsection (1); and

(b)

the person engages in conduct; and

(c)

the conduct contravenes the requirement.

Criminal penalty: 50 penalty units.

(2)

For the purposes of subsections (1) and (1A), it is a defence if a person charged proves that he or she reasonably believed that the representation was not false or misleading.

Right to recover loss

(3)

A person who suffers loss as a result of a contravention by another person of this section may recover the amount of the loss from that other person or any other person involved in the contravention.

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