Unit 3 P2 P5
Limitations to marketing P2 Task
Legal
Sales of Goods Act 1979: This Act was created by the Parliament in 1979 to apply a set of laws,
which every organisation must follow while running their business. Within the Act, it explains that a
product must be fit for its purpose, meaning that if a customer buys a product and it is not up to a
satisfactory standard, then they are legally allowed to return the product and get a refund, as it was
not fit for purpose. A business would agree that is good relations with their customers so that they
are happy and buy more products from the business. As a business, they have a responsibility to
provide good standard products to their customers. For example, McDonalds must make sure that
all the food they serve is fresh and of high standard, if not customers are able to return the food and
be provided with a new product that is up to standard.
The Consumer Protection from Unfair Trading Regulations 2008: This involves the behaviour and
the way that customers should act and how they should not put pressure onto anyone to buy their
products. Traders are also forbidden from misleading people and forcing them into signing
documents, for example a contractor may quote something that the customer may not want
meaning that the contractor has misled the customer. The act aims to help people that may not
have much knowledge into something that they are purchasing, employers must be honest about
their business so that consumers are all treated equally and are being provided with the same
information. An example of this may be a phone company trying to pressure a customer into buying
a contact, which is more expensive than what they wanted, and may feel obliged into buying the
recommended phone when they do not want and cannot afford it.
Consumer Credit Acts 1974 and 2006: This involves when businesses take payments of credit of a
customer, they have to follow strict guidelines and must tell the customer of all the payments and
information. An example of this is when a company advertises their product and gives a false Apr on
their product and then includes a small print which many customers will not notice and then will
willing purchase the product under false pretences, this is a criminal defence and could end in
possible imprisonment.
Consumer Protection (Distance Selling) Regulations: This gives further protection to customers
when they are purchasing a product over the phone or online. The seller of the product is inclined to
give clear detailed information about the price and delivery and any other information that they
should include which customers can usually find on their website under terms and conditions.
Companies may not mislead consumers as they will not be satisfied with the product and could
mean that the company will get a fee. An example of this could be a sports centre advertising a
membership on its website and showing a wide range of facilities and activities that the centre does
not really have which the customer finds on showing up. Under these circumstances, customers are
allowed seven working days to cancel their membership and get a full refund and the services were
not what were promised.
Data Protection Act: The Data Protection Act helps to make sure that all of a company’s details are
kept safe and are protected at all times from other businesses. Info should be kept confidential and
Limitations to marketing P2 Task
Legal
Sales of Goods Act 1979: This Act was created by the Parliament in 1979 to apply a set of laws,
which every organisation must follow while running their business. Within the Act, it explains that a
product must be fit for its purpose, meaning that if a customer buys a product and it is not up to a
satisfactory standard, then they are legally allowed to return the product and get a refund, as it was
not fit for purpose. A business would agree that is good relations with their customers so that they
are happy and buy more products from the business. As a business, they have a responsibility to
provide good standard products to their customers. For example, McDonalds must make sure that
all the food they serve is fresh and of high standard, if not customers are able to return the food and
be provided with a new product that is up to standard.
The Consumer Protection from Unfair Trading Regulations 2008: This involves the behaviour and
the way that customers should act and how they should not put pressure onto anyone to buy their
products. Traders are also forbidden from misleading people and forcing them into signing
documents, for example a contractor may quote something that the customer may not want
meaning that the contractor has misled the customer. The act aims to help people that may not
have much knowledge into something that they are purchasing, employers must be honest about
their business so that consumers are all treated equally and are being provided with the same
information. An example of this may be a phone company trying to pressure a customer into buying
a contact, which is more expensive than what they wanted, and may feel obliged into buying the
recommended phone when they do not want and cannot afford it.
Consumer Credit Acts 1974 and 2006: This involves when businesses take payments of credit of a
customer, they have to follow strict guidelines and must tell the customer of all the payments and
information. An example of this is when a company advertises their product and gives a false Apr on
their product and then includes a small print which many customers will not notice and then will
willing purchase the product under false pretences, this is a criminal defence and could end in
possible imprisonment.
Consumer Protection (Distance Selling) Regulations: This gives further protection to customers
when they are purchasing a product over the phone or online. The seller of the product is inclined to
give clear detailed information about the price and delivery and any other information that they
should include which customers can usually find on their website under terms and conditions.
Companies may not mislead consumers as they will not be satisfied with the product and could
mean that the company will get a fee. An example of this could be a sports centre advertising a
membership on its website and showing a wide range of facilities and activities that the centre does
not really have which the customer finds on showing up. Under these circumstances, customers are
allowed seven working days to cancel their membership and get a full refund and the services were
not what were promised.
Data Protection Act: The Data Protection Act helps to make sure that all of a company’s details are
kept safe and are protected at all times from other businesses. Info should be kept confidential and
