Unit 5 - Chapter 24 Flashcards
_______ ____ Law is primarily concerned with protecting interests of consumers
Consumer Protection
________ is an individual who purchases goods or services primarily for personal, domestic, or household purposes
Consumer
In consumer protection law, the assumption is that consumers are at a _______
- -> not well informed
- -> not experienced in transactions
disadvantage
Primary source of competition law in Canada is the federal _______ Act
Competition
Main Goals of Consumer Protection Law
To protect consumers:
- in contract for the purchase of goods and services
- from unfair selling and marketing practices
- from physical harm and injury
____ ____ are illegal business practices that exploit the unequal bargaining position of consumers
unfair practices
_____ sales are the fastest growing area of retailing in Canada
Online
_______ Act sets out minimum packaging and labelling requirements for all prepackaged goods sold in Canada, other than drugs, cosmetics, and medical devices
Consumer Packaging and Labelling
–> encourages fair competition by ensuring consumers can compare price and quantity
__________ Council is supported by the Canadian Association of Broadcasters (CAB) with the approval of the Canadian Radio-television and Telecommunications Commission (CRTC).
Canadian Broadcast Standards
–> has an equivalent code of ethics and complaints process, dealing specifically with promotion in broadcast media
________ matters regulated by the Competition Act include price fixing and deceptive telemarketing
Criminal
_________ matters regulated by the Competition act include misleading advertising and discriminatory practices
Civil “reviewable”
______ is defence based on adopting reasonable steps to avoid the violation of a legal duty
Due Diligence
A business can defend itseld by proving that the allegations are unfounded or that it exercised ____ in its advertising messages
due diligence
Competition Act defines a _____ or ___ claim as occuriring when a person for the purpose of promoting, directly or indirectly, the supply of use of a product or for the purpose of promoting, directly or indirectly, any business interest, by any means whatever, makes a representation to the public that is false or misleading in a material respect
false or misleading
Some marketers are keen to cater to consumer’s awareness of the environmental consequences of use of the products they choose and may overstate the features of their product. This is known as _____
greenwashing
_____ sale is advertising a product as “on sale” when it is not - misleads consumers about ordinary price
False
_______ ____ is failing to sell at the lower of the two or more prices marked on or otherwise appearing with regard to a product
double ticketing
_________ is a marketing tactic where one advertises a product at a very low price to attract customers, then encouraging them to accept another product that is usually more expensive
Bait and Switch
______ is conspiring with competitors to fix the prices charged for goods or services
price fixing
_____ _____ is conspiring to fix the bidding process to suit collective needs of those submitting bids
Bid rigging
- -> manipulates the market through price
- -> no market impact needs to be proven
In _________ position, anti competitive acts include buying up products to prevent the erosion of price levels, requiring suppliers to sell only to certain customers, and selling products below acquisition cost in order to discipline or eliminate competitors
abuse of dominant
_______ is when prices are set unreasonably low in order to drive out the competition
predatory pricing
___ ______ is the attempt to drive the final retail price of goods upward and the imposition of recriminations upon noncompliant retailers
price maintenance
____ _____ is a criminal act under the Competition Act if:
- participants pay for right to receive compensation for recruiting new participants
- participants require to buy specific quantity before being allowed to join
- participants knowingly sold unreasonable quantities of the product (inventory loading)
- participants not allowed to return products on reasonable terms
pyramid selling
