Penalty for false representations etc.
117 Penalty for false representations etc.
A person shall not in, or in relation to, an offer to enter into a regulated contract or a regulated mortgage, make a representation that is false or misleading.
- 10 penalty units.
It is a defence to a prosecution of a person for an offence under subsection (1) if the person proves that when the offer was made he—
believed on reasonable grounds that the false matter was true; or
believed on reasonable grounds that the misleading matter was not misleading.
A supplier shall not in or in relation to an offer by a person to a credit provider (not being the supplier) to enter into a regulated contract or a regulated mortgage, make a representation that is false or misleading by reason of the inclusion in the representation of false or misleading matter or of the omission from the representation of any material matter of which he had been informed by that person.
- 50 penalty units.
A supplier shall not induce, or attempt to induce, a person to make, in or in relation to an offer by that person to a credit provider (not being the supplier) to enter into a regulated contract, a representation that is false or misleading.
- 50 penalty units.
It is a defence to a prosecution of a supplier for an offence under subsection (3) or (4) or to a claim by a credit provider under subsection (6) if the supplier proves that when the offer was made he—
believed on reasonable grounds that the false matter was true;
believed on reasonable grounds that the misleading matter was not misleading;
in the case of an omission, believed on reasonable grounds that no material matter of which he had been informed by the person by whom the offer was made had been omitted, being material matter the omission of which would make the representation false or misleading; or
in the case of an omission, did not know that the omitted matter was material.
Where in or in relation to an offer by a person to a credit provider to enter into a regulated contract or a regulated mortgage—
a supplier makes a representation in contravention of subsection (3); and
the credit provider suffers loss by reason of the representation—
the supplier is liable to the credit provider for the amount of the loss.
Subsection (6)—
does not affect the liability of a person to be convicted of an offence under subsection (3); and
is in addition to all other rights of a credit provider exercisable against the supplier who made the representation in contravention of subsection (3) (whether under this Act or any other Act or law).
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