meeting consumer protection laws
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2.6_meeting_consumer_protection_laws_v.2.pptx | |
File Size: | 3155 kb |
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2.6_meeting_consumer_protection_laws_starter_activity.docx | |
File Size: | 41 kb |
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Question: What rights do you have as consumers?
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The Sale of Goods Act
This helps consumers get compensation when things go wrong. According to this Act, when a business like Topshop sells a product to a customer, a contract is established between the seller and the buyer. The seller, the business, has to make sure that products have 3 characteristics:
- Match the description - the goods must match the description given to them
- Merchantable quality - this means they must be of satisfactory quality - it must be free from defects
- Fit for purpose - this means they must do as of what is reasonable expected of them. They must also last for a reasonable amount of time
If a consumer buys a product that does not meet any of these 3 characteristics then by law, the business SELLING the product to the consumer must then either give a refund, a replacement or a repair. Some retailers will additional rights such as the ability to take back a product if you decide you don't want it. They don't have to do this.
This helps consumers get compensation when things go wrong. According to this Act, when a business like Topshop sells a product to a customer, a contract is established between the seller and the buyer. The seller, the business, has to make sure that products have 3 characteristics:
- Match the description - the goods must match the description given to them
- Merchantable quality - this means they must be of satisfactory quality - it must be free from defects
- Fit for purpose - this means they must do as of what is reasonable expected of them. They must also last for a reasonable amount of time
If a consumer buys a product that does not meet any of these 3 characteristics then by law, the business SELLING the product to the consumer must then either give a refund, a replacement or a repair. Some retailers will additional rights such as the ability to take back a product if you decide you don't want it. They don't have to do this.
The Trade Descriptions Act and Consumer Protection from Unfair Trading Regulations
This Act is different form the SGA. The Trade Descriptions Act, updated by the Consumer Protection Act from Unfair Trading Regulations, makes a number of different actions illegal. Businesses selling to consumers that offend against these laws can be taken to court and fined. There are a number of things a business cannot do:
- Giving false information - a business cannot give false information about a product
- Failing to give important information - if a product is not new but is advertised, this information must be given. If charges are linked to using a good or service, this must be made clear when entering/buying
- Acting aggressively - businesses are not allowed, by law, to use aggressive sales tactics to sell their products. Also, if a business is carrying out additional work, e.g. repairing something for a customer, if they carry out additional work not previously agreed, they cannot hold on to the product if the consumer states that they didn't want this work done
This Act is different form the SGA. The Trade Descriptions Act, updated by the Consumer Protection Act from Unfair Trading Regulations, makes a number of different actions illegal. Businesses selling to consumers that offend against these laws can be taken to court and fined. There are a number of things a business cannot do:
- Giving false information - a business cannot give false information about a product
- Failing to give important information - if a product is not new but is advertised, this information must be given. If charges are linked to using a good or service, this must be made clear when entering/buying
- Acting aggressively - businesses are not allowed, by law, to use aggressive sales tactics to sell their products. Also, if a business is carrying out additional work, e.g. repairing something for a customer, if they carry out additional work not previously agreed, they cannot hold on to the product if the consumer states that they didn't want this work done
The reason for consumer protection
In the past, consumers have been exploited by some businesses. To increase their profits, business have sold shoddy goods. To increase sales, businesses have used high pressure selling tactics.
Consumer protection is particularly important in areas of health and safety. Each year several hundred people fall ill from buying food which is not fit for human consumption. This would be even worse if there was no law protecting consumers from this. Its not just food though, clothes and electrics can cause ricks if not regulated properly. Governments have passed laws to protect consumers from businesses that sell these products.
In the past, consumers have been exploited by some businesses. To increase their profits, business have sold shoddy goods. To increase sales, businesses have used high pressure selling tactics.
Consumer protection is particularly important in areas of health and safety. Each year several hundred people fall ill from buying food which is not fit for human consumption. This would be even worse if there was no law protecting consumers from this. Its not just food though, clothes and electrics can cause ricks if not regulated properly. Governments have passed laws to protect consumers from businesses that sell these products.
The effects of consumer legislation on businesses
- Knowing the law - Businesses have to understand the law so that they do not break it. Some businesses will just read leaflets and books provided by the Office of Fair Trading or other government departments, but some will have very expensive legal teams advising them
- Compliance costs - following the law leads to extra costs because they have to give refunds, check that goods are safe and store products in particular ways (food)
- Revenues and profits - if a business follows the law and gives extra rights (e.g. the ability to return goods even without defects) they can use this as a marketing tool which boosts their reputation. The opposite is true if they do not
- Knowing the law - Businesses have to understand the law so that they do not break it. Some businesses will just read leaflets and books provided by the Office of Fair Trading or other government departments, but some will have very expensive legal teams advising them
- Compliance costs - following the law leads to extra costs because they have to give refunds, check that goods are safe and store products in particular ways (food)
- Revenues and profits - if a business follows the law and gives extra rights (e.g. the ability to return goods even without defects) they can use this as a marketing tool which boosts their reputation. The opposite is true if they do not
2.6_meeting_consumer_protection_laws_activity.docx | |
File Size: | 19 kb |
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evaluative_question_answer_structure.docx | |
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