consumer protection

Question 1

why do consumers need protection?
(4)

Answer 1

1. consumers can be vulnerable
2. consumers can be bombarded with small print
3. consumers can be desperate
4. consumers are not experts

Question 2

why do consumers need protection?
(2 points)

Answer 2

• businesses aim to maximise profits which can be overwhelming so they resort to devious tactics
• this can lead to: poor quality goods,
  -sub standard services,
  -misleading information
  -pressurised selling
  tactics

Question 3

1.what is consumer legislation?

2. what are the 4 main pieces of legislation?

Answer 3

1.laws that have been introduced to prevent businesses from treating their customers unfairly

2. consumer rights act 2015
   -consumer credits act 1974 & 2006
   
   • consumer protection from unfair
     trading 2008
   • consumer contracts regulations

Question 4

1. outline the purpose of the consumer rights act 2015
2. what does it state?

Answer 4

1. covers the purchase of goods and services by regulating the contract between a consumer and retailer when a product or service is purchased
2. all goods must be of satisfactory quality, fit for the purpose of which they were bought and must correspond with the description given

Question 5

1.outline the consumer credits act 1974 and 2006

2. what does the act require?
3. what other 2 factors does the act require?

Answer 5

1.controls the way that businesses lending money operate

2. that the creditor must give certain information to the debtor before the contract is made including:
   - interest rate
   - how much the repayments will be
   - cancellation right of the debtor
3. Annual percentage rate must be produced so that consumers can compare credit deals

• debtor has a cooling off period after signing a credit contract where they can change their mind

Question 6

1.outline the purpose of the consumer protection from unfair trading regulations 2008

2. what must manufacturers be sure to do?

Answer 6

1. makes it a criminal offence for businesses to engage in unfair business practices and they can be prosecuted for doing so
2. take care about information presented on packaging or within advertisement

Question 7

1. outline the purpose of the consumer contracts regulations 2013
2. what else does the act provide consumers with

Answer 7

1. protects consumers who buy online or over the phone, if a business breaks these regulations the consumer is not bound by the contract
2. a 14 day cooling off period where consumers are entitled to change their minds and cancel the contract with receiving a full refund

Question 8

1. what is an ombudsman
2. give 3 examples
3. what do ombudsman’s look at?

Answer 8

1. services available for various industries that offer complaints procedures for dissatisfied customers set up by the government
2. ofcom, ofwat, ofqual
3. all written information from both sides and make decisions accordingly, the final decision can be overturned by court

Question 9

1. what is the trading standards department/ consumer advice responsible for?
2. how do they operate?

Answer 9

1. checking that local businesses are complying with local trading laws
2. trading standards officers carry out spot checks and investigate whether goods are:
   - correctly described
   - correctly priced
   - sold in correct quantities
   - no counterfeit goods are being sold

Question 10

1. what is the role of the competition and markets authority ( CMA ) 2014?
2. give three examples of what they prevent

Answer 10

1. to make markets work well for consumers by ensuring the businesses operating in these markets are not engaging in any anticompetitive business practices that restrict competition in the market
2. price agreements (businesses agreeing not to compete on price)

• boycott activities (suppliers refusing the to supply if they stock the goods of a competitor
• mergers that could result in a company with such a large market share it restricts competition

Question 11

1. what is ethics?
2. give 3 examples of ethical issues
3. why are ethics complicated?
4. what have some businesses done because of ethics? give an example

Answer 11

1. relates to what is morally right and wrong and businesses have to make ethical decisions
2. how customers are treated
   - how businesses deal with suppliers
   - working conditions
3. ethics relate to opinions
4. reinvented themselves, e.g. mcdonald’s