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Business > Solving Consumer Complaints > Flashcards

Solving Consumer Complaints Flashcards

1
Q

Two ways of solving consumer complaints

A

Non-Legislative (non-legal)

Legislative (legal)

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2
Q

Non-legislative methods of solving cc

A

Negotiation

CAI (Consumer Association of Ireland)

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3
Q

Negotiation def

A

Process of bargaining to reach a mutually acceptable solution to the conflict

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4
Q

Negotiation example

A

Consumer goes to shop and explains problem, clear as to what they want to resolve the problem.
Shop explains its position, accept resolution, offer alternative or reject complaint.
Consumer and shop must continue talking til compromise is reached.

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5
Q

What must the consumer and shop keep doing

A

Talking til they reach a compromise.

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6
Q

Consumer Association of Ireland

A

An interest group for consumers. Aim to make sure consumers get good quality products and services.
Aim to make sure consumers know their rights.

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7
Q

CAI Aim

A

Make sure consumers get good quality products and services and are aware of their rights.

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8
Q

CAI Functions (role)

A
  1. Give expert advice to consumers on their rights and how to solve their problems.
  2. Lobbies the gov about consumer issues eg: laws.
  3. Publish ‘Consumer’s Choice’ about consumer rights, helps them make good buying decisions.
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9
Q

Legislative Methods of solving Consumer Complaints

A
  1. Sale of goods and supply of services Act 1980
  2. Consumer Protection Act 2007
  3. Competitive and Consumer Protection Commission (CCPC)
  4. Small Claims Court
  5. Ombudsman
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10
Q

A consumer has the following rights under the SGSSA 1980 when buying goods

A

Goods must be of

  1. Merchantable quality (rotten apple)
  2. Fit for purpose (do exactly what designed and intended) (raincoat)
  3. As described- in ad, packaging brochure or salesperson (top)
  4. Match sample- Must be identical to the sample displayed in shops (paint pots)
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11
Q

Rights under SGSSA 1980 when buying services

A
  1. Supplier is qualified- Doctor + medical degree
  2. Supplier ensures proper care- mechanic v careful putting brake pad in.
  3. Materials used are of merchantable quality- Hairdresser’s scissors
  4. Goods sold are of merchantable quality- Shampoo in hairdresser
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12
Q

Responsibility

A

Retailer is always legally responsible for solving a consumer complaint. Cannot tell consumer to contact the manufacturer as contract is with retailer.

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13
Q

Guarantee

A

Extra protection for consumer. Can choose to have goods fixed under guarantee by manufacturer or insist retailer follows law.

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14
Q

Illegal signs

A

No refunds
No refunds on sale items
Credit notes only

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15
Q

Remedies to Sale of Goods and Supply of Services Act 1980

A

Repair
Replace
Refund

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16
Q

Refund

A

Consumer gets back full amount paid for product

17
Q

Repair

A

Retailer must get fault fixed with the product for consumer

18
Q

Replacement

A

Retailer gives consumer perfect substitute for imperfect good sold.

19
Q

Consumer Protection Act 2007

A

Deals with unfair business to consumer commercial practices.

20
Q

Commercial practice def

A

Any conduct or description offered by a business to a consumer before, during, or after the consumer transaction.

21
Q

When is commercial practice unfair

A
  1. If business doesn’t give consumer reasonable standard of skill and care to which they’re entitled.
    If business isn’t honest and upfront.
  2. It affects consumer’s ability to make an informed choice, distorts their decision of whether or not to buy the product.
22
Q

Types of unfair commercial practices

A
  1. Misleading practices (ads, info)
  2. Aggressive practices(threatening language/taking advtg)
  3. Prohibited practices (false claims, lying)
23
Q

Misleading practices

A

Contain false info, deceive avg consumer-cause them to buy something they otherwise wouldn’t. Includes

  1. Misleading ads
  2. Misleading info from salesperson
  3. Leaving out important info needed to make an informed decision
24
Q

Offence to make false/misleading claim about

A
  1. Nature of product
  2. Results expected from product (Rimmel 1-2-3 mascara)
  3. It’s main characteristics (TV package- sports)
  4. Geographical region (shamrock on Chinese product)
  5. Usage and prior history (car dealer-mileage 100,000-10,000)
  6. Price (if sale is advertised, original price must have been in place a reasonable amt of time)
25
Q

What makes a practice agressive

A

If it harasses consumer or puts them under unfair pressure so they can’t make an informed decision under their own free will. Includes

  1. Threatening/abusive language by seller
  2. Taking advantage of consumer’s misfortunes when seller knows their judgement is impaired.
26
Q

Prohibited practices- which are banned

A
  1. Making false claims about curing illnesses.
  2. Advertising a fake closing down sale.
  3. Direct appeal to kids to pressurise parents into buying goods.
  4. Running a comp where top prize isn’t available.
  5. Telling consumer they’ve won a free gift which rewires payment to claim eg: premium phone line.
27
Q

Pricing and Price Display rules

A

Weighing scales in optimal position
Prices must be on display
Gov decide how prices are displayed eg Tax Inclusive
Gov can set max price charged for a product eg: Electricity & postal services.

28
Q

Sanctions and penalties for breach of Consumer Protection Act 2007

A

CCPC can

  1. Take retailers to court.
  2. Issue a compliance notice (orders bus. to stop prohib practice)
  3. Apply for prohibition order to force bus. to stop committing the practice.
  4. Issue on the spot fines to bus. who break price display rules.
  5. Name and shame businesses who break the law for all consumers to see.
29
Q

Redress (Consumer Protection Act 2007)

A

Exemplary damages- Consumer can sue business in court for compensation. This is extra payment from business as punishment.
Compensation order- CCPC apply for one from the courts. Forces a business to pay compensation for the consumer.

30
Q

Competitive and Consumer Protection Commission role

A

To promote fair competition. Protecting the interests of consumers.

31
Q

Functions of the CCPC

A
  1. Provide advice to consumers + info.
  2. Provide info and advice to businesses on their legal obligations to consumers.
  3. Advise the gov on how best to ensure fair competition & that consumers are protected.
  4. Investigates breaches, issues fines and brings serious offenders to court.
  5. Publish a consumer protection list, identifies businesses breaking consumed law.
32
Q

Small Claims Court role

A

To handle consumer complains easily, quickly and cheaply without a solicitor.

33
Q

Small claims court details

A

Consumer cannot sue for over 2k.
Consumer completes application form, pays small fee of 25€ to local district court.
This can be made online using Small Claims Online.

34
Q

Small claims court procedure

A

Informal- If business contests claim, meeting brought together by Small Claims Registrar to try solve dispute.
Formal- Goes to local district court for a public hearing. Evidence must be provided and witnesses summoned.

35
Q

Small Claims Court Solution

A

Judge listens to both sides and makes his ruling. If he rules in the consumer’s favour, the business has four weeks to pay compensation.

36
Q

Ombudsman for Public Services role

A

To investigate complaints about consumers who’ve been mistreated by public bodies, on behalf of the consumer.

37
Q

Examples of public bodies

A

Government departments (justice, defence, education)
Local authorities (Fingal County Council)
Health Service Executive
An Post
FÁS

38
Q

Ombudsman procedure

A
  1. Complaint (written, phone, e-mail)
  2. Investigation (Omb. go to public body, view docs & interview)
  3. Recommendation (findings from ombudsman non-legally binding)

Business (3 decks)

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