Limitations and constraints of marketing Unit 3 P2
Consumer law
Sale of Goods Act 1979
Consumer Protection from Unfair Trading
Regulations 2008
Consumer Credit Acts 1974 and 2006
Consumer Protection (Distance Selling)
Regulations 2000
Data Protection Act 1998
Sale of Goods Act 1979
You have to give a full description of the product you are selling
◦ Example if you are selling a jumper, and you say it is 100% wool, then is must be 100% wool.
The seller needs to give the buyer a receipt and if the goods don’t match the description they can return the goods and get a replacement or their money back
Consumer Protection from Unfair Trading Regulations 2008
Traders must act honestly and fairly towards their customers
Fairly means not misleading consumers
◦ Misleading actions
Selling goods that don’t exist
◦ Misleading omissions
Not telling the whole truth about products
◦ Aggressive sales techniques
Threatening consumers
Trying to force consumers to sign contracts.
Consumer Credit Acts 1974 and 2006
Credit is borrowing the money to buy products and paying it back at a later date.
It usually involves paying interest.
All credit lenders need to be licensed by the
Office of Fair Trading, failure to do so can lead to a fine or imprisonment
Lenders must be clear and open in their advertising and wording of contracts.
CONSUMER Credit Act cont. Extra protection when paying by credit card because under section 75 the lenders
(eg:Barclaycard) are equally as liable as the trader. Right to pay less interest on credit if you pay early
Right to see any credit references that relate to you
Right to cancel a loan during a 14 day cooling off period.
Sales of goods when the consumer is not present.
◦ Internet
◦ Over the phone
◦ Catalogues
◦ Right to clear information about the goods, the delivery and the price
Right to cancel after 7 days
It makes demanding payment for unsolicited good a criminal offence.
Data Protection Act 1998
Protects the use of personal information by businesses and other organisations
The Act has greater significance to customers because marketers have started using direct mail to communicate
The business will have to obey the Act if they want to use personal information, customer details and employee details.
It gives consumers greater control on how the data can be used
Data Protection Act (1998)
Any organisation that stores data files needs to be aware of this act.
Data Protection Act (1998)
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First introduced 1984
Eight principles
Personal Data should be obtained fairly and lawfully Personal data should be held only for (one or more) specified purpose
Personal Data should not be used or disclosed in any way contrary to the purpose in
