3.2.5 Meeting consumer protection laws Real or Fake? Left pic is real 3.2.5 Meeting consumer protection laws 3.2.5 Meeting consumer protection laws

Consumer protection Why do consumers need protecting? Who is responsible for protecting consumers? Do you know your rights? 3.2.5 Meeting consumer protection laws

3.2.5 Meeting consumer protection laws Consumer Protection The Trade Descriptions Act was originally passed in 1968 and is updated on a regular basis. Its purpose was to ensure that goods and services were sold as described. Retailers are not allowed to mislead consumers regarding the quality of a product. It is an offence to falsely describe a product. This protects the consumer and can see the retailer fined. http://www.youtube.com/watch?v=tcliR8kAbzc A room with a view Fawlty Towers Has this room been sold as described? 3

3.2.5 Meeting consumer protection laws Consumer Protection The Sale of Goods Act was originally passed in 1979. Its purpose was to ensure that the goods sold are: As described Of reasonable quality Fit for purpose Failure to do so entitles the consumer to a refund or a replacement Businesses that do not meet the requirements of these acts must refund the customer their money or replace or repair faulty goods. Businesses must ensure that they follow these laws. This will cost them money but a poor reputation is likely to hit the profits of those businesses that do not comply with the law. The business may be taken to court and fined if it fails to meet its duties. 4

Consumer Protection Why do we protect consumers? 3.2.5 Meeting consumer protection laws Consumer Protection Why do we protect consumers? In order to maximise profits some firms would unfairly exploit consumers if they were not protected ‘Consumerism’ places the interests of the consumer as the most important factor in the exchange process What is the impact on the firm? Consumer Protection legislation ensures that firms must take into account the consumers’ requirements – if not they can be taken to court. In particular, this will increase cost These laws safeguard the reputation of UK and EU firms Monty Python Dead Parrot Sketch 5

Consumer Protection Customers are protected by law 3.2.5 Meeting consumer protection laws Consumer Protection Customers are protected by law This has an influence on business who must abide by consumer protection law or face the legal consequences Advantages Disadvantages Better reputation for UK firms Increased costs More customers due to confidence in the product Increases the likelihood of legal action Reduces risk of UK products being undercut by poorly made products from home and abroad A continuous process to keep up with new legislation regarding consumer protection

Has consumer protection gone mad? Mattress  Warning: Do not attempt to swallow Matches  Caution: Contents may catch fire. Pepper Spray  Caution: Never aim spray at your own eyes. Hair Dryer  Warning: Do not use while sleeping. Rowenta Iron  Warning: Never iron clothes on the body. 3.2.5 Meeting consumer protection laws

Question time Max sells children’s toys on a market stall in East London. He has recently imported a large number of plastic bead craft sets from abroad. Trade is going well and so far in just one day he has sold 100 sets at £2.50 each. Melanie is one of his customer’s who buys the set as a treat for her 6 year old daughter. The packaging stated: Not suitable for children under the age of 4 Contains 1000 plus brightly coloured beads Instructions on how to make lovely jewellery When Melanie gets home her daughter opens the packet to find just a small bag of beads and some string. The instructions are in a foreign language. Melanie goes back to Max to demand a refund. He refuses because she has opened the packet and does not have a receipt. What is meant by the term “consumer protection”? (2) Identify two ways in which the product has breached the specific terms of the Sale of Goods Act. Use the correct legal expression and support with an example. (4) Explain Melanie’s rights. (3) 3.2.5 Meeting consumer protection laws