Legal Controls & Marketing Strategy
- Governments often implement laws that regulate business decisions or behaviour in relation to marketing
- Key areas of legislation include
- The safety of products
- It is illegal to sell products which have serious flaws
- Retailers and manufacturers can be held responsible for any harm caused
- Retailers and manufacturers can be held responsible for any harm caused
- It is illegal to sell products which have serious flaws
- The standard and quality of products and services
- Products must be of satisfactory quality and fit for the purpose intended by the consumer
- Products must be of satisfactory quality and fit for the purpose intended by the consumer
- Advertised weights and measures of products
- It is illegal to sell underweight goods or use inaccurate weighing equipment
- It is illegal to sell underweight goods or use inaccurate weighing equipment
- The rights of customers if they are unhappy with their purchase
- When customers purchase products online, they have 14 days in which to return the product
- When customers purchase products online, they have 14 days in which to return the product
- The product information that must be given to customers
- Products must perform as described on the label or by the retailer
- Certain details must be included on some packaging, e.g. health warnings
- False claims being made about prices
- Misleading pricing claims such as ‘25% off for this week only’ when the product was being sold for the same price the previous week are not allowed
- The safety of products
Examples of consumer protection legislation
- The Australian Consumer Law protects consumers from unfair and unsafe business practices when buying goods and services, including
- Unfair trading
- Consumer guarantees
- Door-to-door sales and direct marketing
- Product safety
- In the UK, the Consumer Rights Act (2015) protects consumers from unfair and dishonest business practices
- It covers the product or service, returns, repairs, replacement and delivery
Exam Tip
You will not be required to show knowledge of specific laws
Make sure you can explain why governments pass laws to protect consumers and what the laws mean for businesses when selling their goods or services. Consider whether changes or introductions of law will increase costs, force changes in production methods or alter marketing mix elements such as packaging or sales promotions
