Abstract

The High Court recently held that misrepresentation by silence can constitute an actionable misrepresentation. A trader may make a misrepresentation by failing to correct a self-induced mistaken belief of a customer, where the trader takes advantage of that mistaken belief. Failure of a trader to disabuse customers of the impression that they are dealing with the brand owner may be sufficient to constitute passing off. Brand owners welcome this decision as it provides protection against new entrants to the market who seek to piggyback on the success of their brand or trade mark.

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