Problem question:

Koala Electronics Pty Ltd (Koala) operates a retail store and an online website to sell LED televisions which it claims are 100% made in Australia. However, the televisions are not made in Australia but in fact most of the components originate from Malaysia and South Korea. The LED televisions are merely assembled and packaged within Australia. Koala operates two websites:- www.koalatvs.com.au and www.koalaelectronics.com.au. Both websites also used the Australian Made logo without proper authorisation. The Australia Competition and Consumer Commission (ACCC) has decided to commence an action against Koala alleging that the business has engaged in conduct that is misleading or deceptive or likely to mislead or deceive, contrary to section 18 of the Australian Consumer Law (ACL). The customers of Koala are also outraged and consider taking action against the business for misrepresentation.

1. Has Koala engaged in misleading or deceptive conduct? Provide reasons for your answer including any relevant cases and/or statutory provisions.

2. Could Koala be made liable in an action for common law misrepresentation? Provide reasons for your answer including any relevant cases.