Chapter 2 - Consumer Conflict Flashcards
Name the Non Legislative Methods of Solving Consumer Conflicts
1) Negotiation/Meet & Talk
2) Arbitration
3) Conciliation
4) CAI - Consumers Association of Ireland
How can consumer conflict arise?
1) Poor Quality products or services
2) Overpriced products or services
3) Bad customer services
Negotiation
Process of Bargaining to try to reach a mutually acceptable solution
Talking between customer and shop until a compromise is reached
Conciliation
An independent outsider employed to sort out a dispute between two parties and does everything to get them to reach a mutually acceptable negotiated solution
Asks a a facilitator
Arbitration
Independent person who makes a ruling to solve a problem, listens to both sides of the argument and tells them what to do to solve the dispute
Both must agree to accept arbitrators ruling in advance - binding arbitration
CAI - Consumers Association of Ireland
Is an interest group for consumers
Aims to make sure that consumers know their rights
Non profit, non governmental organisation
Consumer Choice Magazine
Name the Legislative methods of solving Consumer Conflicts
1) Sale of Goods and Supply Of Services Act 1980
2) National Consumer Agency
3) Consumer Protection Act 2007
4) Small Claims Court
5) Ombudsman for Public Services
Sale Of Goods and Supply of Services (All rights)
1) Goods: must be of merchantable quality, fit for purpose, as described and identical to any sample shown
Entitled to 3R: Refund, Repair Replacement
2) Services: Supplier must be qualified, must provide service with proper care, materials used must be of merchantable quality
Entitled to 3R: Refund, Repair, Replacement
3) Retailer: responsible for sorting out consumer complaints and contract is between consumer and retailer
4) Illegal Signs: hanging of certain signs is an offence, illegal eg no refunds, credit notes only
5) Guarantee: Offers consumer extra protection and extra choice, good can be replaced - warranty
6) Inertia Selling: demanding payment for unsolicited goods, illegal
National Consumer Agency
1) Set Up by the Irish gov. under CPA 2007, job is to investigate complaints from consumers
2) Information: informs consume of their rights eg website
3) Investigation: investigates business which breach consumer law, can enter business, take evidence, apply to courts for search warrant
4) Consumer Legislation: can issue on the spot fines and name and shame business
5) Conducts Research and is an Advocate for Consumers: protects and promotes interests of consumers
6) Can prosecute a business that breaks act, issue bus. with compliance notice, apply to courts for prohibition order
Consumer Protection Act 2007
1) Misleading Practices
2) Aggressive Practices
3) Prohibited Practices
4) Pricing
5) Enforcement/Sanctions
6) Redress
Misleading Practices
False information deceiving or misleading consumer is an offence
Eg) nature of product, expected results, geographical origin, usage and history
Aggressive Practices
If a business coerces or puts a consumer under unfair pressure
Threatening/abusive language and behaviour
Taking advantage of a consumers circumstances eg Old age
Prohibited Practices
False claims about cures for illnesses
Direct appeal to children
Inertia selling - demanding payment for unsolicited goods
Pricing
Grocery stores provide weighing scales for unpackaged food
An offence to stop consumers from reading price of product on display
Maximum price - extreme cases
Enforcement/Sanctions
Prosecution Compliance notice Prohibition order Name and shame Fines
