Consumer Protection Flashcards
When is a business not been ethically managed
when it is not providing quality goods to meet customer expectations
Why do consumers need protection
Some businesses resort to dubious tactics to increase sales and revenue
Give examples of unethical lengths businesses go to to increase revenue
selling poor quality good
Substandard services
Misleading information
Pressurized selling tactics
What is in place to control how businesses conduct themselves and to protect consumers
Government passes laws and set up organisations for consumer protection
Name 4 legislations passed by government
1 consumer rights act 2015
2 consumer credit Act 1974 and 2006
3 Consumer Protection from Unfair Trading Regulations 2008
4 Consumer Contracts (information, cancellation, and additional charges) regulations 2013
What does consumer rights act 2015 cover
1 Purchase of goods services and digital content
2 each time a consumer buys a product they make a contract with the retailer
3 the act regulates the contract
4 it states all goods must be of satisfactory quality, fit for purpose for which they were bought and correspond with the description
5 If not consumer is entitled to a refund if they refuse they can be taken to court
What does consumer rights act 2015 state
All services unless otherwise stated must be carried out at a reasonable price within reasonable time with reasonable care and skill
What do consumer credit acts 1974 and 2006 control
The way businesses lending money operate.
How do these acts control how money is lent
1 ensures the lender (creditor) gives key information to the borrower (debtor) before the contract is made
2 gives the debtor cooling off period after signing the credit contract- can change your mind within 14 days
What information must the creditor give the debtor
1 interest rates
2 how much repayments will be
3 cancellation rights of debtor
What is APR
annual percentage rate - tolls how much interest will be charged and hoe it is calculated and arrangement fees
What does consumer protection from unfair trading refs 2008 do
makes it a criminal offense for a business to engage in unfair practices eg making false statements about a product, using aggressive sales techniques, misleading about price
What does consumer contracts (cancellation and additional charges ) res 2013 do
protects customers who buy line or over the phone (distance sales) gives consumers cancellation period of 14 days cooling off with full refund
What is the role of the ombudsman
offer complaints procedures for dissatisfied customers
List some ombudsman and explain they work
1 health service ombudsman, energy ombudsman,
Once you have tried to resolve your dispute with the business following their complaints procedures contact the relevant ombudsman
They look at all written information provided by consumer and make a final decision that can only be overturned by a court
What is the role of trading standards
All Las have one
They are responsible for checking local businesses comply with trading laws eg if a restaurant advertises locally sourced they check , also check no counterfeits are sold
Their officers can fine and imprison
Who are CMA
competition and market authority set up bu=y government in 2014 to replace office of fair trading
What is role of CMA
1 Attempts to ensure markets work well by ensuring businesses do not carry out anticompetitive business practices that restrict the competition in the market eg boycotting supplying retailers who stock competitors good
2 Also investigates proposed merges to ensure a merger doesn’t result in a company gaining such a large market share that it restricts competition
3 examine situations where companies act together to form an illegal cartel to limit competition in the industry
What is competition policy
Laws put into place by government focused o controlling the power of big businesses so that they do not control price or amount produced
Where can consumers get advice
citizens advice
Consumer line
Consumer rights
What are ethics
things that are morally tight
Give examples of ethical decisions made by a business
1 how they treat their customer
2 how they deal with suppliers
3 fair price
3 working conditions in overseas factories
Give examples of things consumer law bans because they are unethical
1 giving false information about a product
2 saying free range when they are not
3 pressurizing a customer to buy
4 supplying poor quality goods
Give an example where business ethics is difficult because it is based on opinion
Marketing - placing sweets near a checkout , some claim this is pester power as children will repeatedly ask parents as sweets are unhealthy this can be seen as unethical Others would argue parents have a choice and that they should educate their childen
State a business who has tried to reinvent themselves because they have been labeled unethical
Mac Donald’s supersize was once a marketing winner but increased worries about obesity the campaign was dropped and more of their marketing now focuses on developing healthy meals
Consumer protection
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