Topic 1:Consumer Protection Act

Question 1

Purpose of the CPA?

Answer 1

• Promotes fair/accessable places for producers to sell their products
• Promotes responsible consumer behaviour
• Establishes national standards to protect consumers regardless of economic status

Question 2

Positives of NCA?

Answer 2

• Protects businesses if they are regarded as consumers
• Protects busineses from dishonest competitors

Question 3

Negatives of NCA?

Answer 3

• Implimentation is time consuming and expensive
• Consumers can take advantage and return goods when not necessary

Question 4

Non-compliance?

Answer 4

• Unfair treatment based in discrimination
• Charging diffrent prices to different coustomers for the same goods
• Refusing coustomer proper information about the product

Question 5

Penalties for non-compliance?

Answer 5

• May recive a compliance order
• May recive large fines
• Business license may be revoked

Question 6

Ways to comply?

Answer 6

• Diclose the prices of all products
• Ensure the quality of the product is standardised for all consumers
• Comply with information display requirements

Question 7

Rights of consumers?

Answer 7

Consumers have the rights to:
- Choose
- Honest dealings
- Information about products
- Fair marketing
- Accountablity form suppliers
- Reasonable terms & conditions
- Equality in the consumer marketplace