Practice question

Which of the following is NOT considered a deceptive trade practice?

  1. Making misleading statements of fact
  2. Employing bait and switch advertising
  3. Representing goods as new when known to be used
  4. Disclosing all known material information in advertising

Answer: D — Disclosing all known material information in advertising

Disclosing all known material information in advertising is not considered a deceptive trade practice because it aligns with ethical advertising standards and consumer protection laws. By fully informing consumers about the nature and characteristics of a product, a dealer helps ensure that buyers can make informed decisions. This practice promotes transparency and builds trust between the dealer and customers. In contrast, the other options involve misleading or dishonest practices that can mislead consumers, which is why they are categorized as deceptive trade practices.

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