Unit 3 – Introduction to marketing
Pass criteria 2
P2 – Describe the limitations and constraints of marketing
Consumer laws are rules that must be adhered to. Companies must make sure that they
comply with consumer law this means that they are legally obliged to keep up to date with
them. These consumer laws include – Sale of goods act, consumer protection from unfair
trading regulations, consumer credit acts, consumer protection regulations, and data
protection.
Sale of goods act 1979 – requires businesses to sell goods as described and of a satisfactory
quality, for example a business cannot sell an 11-inch laptop as a 15-inch laptop and the
laptop itself must be new and undamaged if advertised in this way. It is required to ensure
that business people to not ‘rip off’ consumers. The aim of it is to stop people from abusing
their position of power over the consumer. Businesses can comply with the terms by
ensuring they don’t lie about the products they are selling.
Consumer protection from unfair trading regulations 2008 – this means that business
cannot use contentious selling techniques which could be perceived as aggressive and
obtrusive. They cannot be dishonest behind the causes of them doing certain activities, such
as they cannot have a closing-down sale if they are not actually closing. It is required so
businesses do not push people into spending money that they don’t want to spend and the
aim is to stop people from being pressured into buying something or thinking that they are
helping by spending money. Businesses can comply by ensuring that their staff are trained
so they know how to legally be a sales person and by business always telling the truth about
their actions and promotions.
Consumer Credit Acts 1974 and 2006 – Businesses must have a license if they want to sell
goods on credit or sell loans. The act sets out a list of requirements such as they must
update their customers on their accounts and if they fall behind on payments. This is to
protect people from forgetting and then years later getting a large bill from the company
and demanding them to pay. This is required to stop businesses from taking advantage of
consumers. The aim is to stop people from falling into debt as businesses should credit
check people when the ask for a loan or credit. Businesses can comply by ensuring they
have the correct licenses and making sure they have the correct measures in place for when
people take out loans.
Consumer Protection (distance selling) Regulations 2000 – This is to do with selling goods
when there is no face-to-face transaction taking place. The regulation requires businesses to
provide information that is clear and concise so consumers can decide on whether they
should make their purchase from that company. This is required to ensure that people don’t
set up companies online and lie about the reasons and ethics of the business. The aim is to
make sure that consumers have the right information to make informed decisions about
where they spend their money. Businesses can comply by ensuring that they put all the
correct information online that they need to.
Data Protection Act 1998 – This protects people’s personal information from being used
unfairly or without consent. The act sets out a list of rules that must be adhered to, for
Pass criteria 2
P2 – Describe the limitations and constraints of marketing
Consumer laws are rules that must be adhered to. Companies must make sure that they
comply with consumer law this means that they are legally obliged to keep up to date with
them. These consumer laws include – Sale of goods act, consumer protection from unfair
trading regulations, consumer credit acts, consumer protection regulations, and data
protection.
Sale of goods act 1979 – requires businesses to sell goods as described and of a satisfactory
quality, for example a business cannot sell an 11-inch laptop as a 15-inch laptop and the
laptop itself must be new and undamaged if advertised in this way. It is required to ensure
that business people to not ‘rip off’ consumers. The aim of it is to stop people from abusing
their position of power over the consumer. Businesses can comply with the terms by
ensuring they don’t lie about the products they are selling.
Consumer protection from unfair trading regulations 2008 – this means that business
cannot use contentious selling techniques which could be perceived as aggressive and
obtrusive. They cannot be dishonest behind the causes of them doing certain activities, such
as they cannot have a closing-down sale if they are not actually closing. It is required so
businesses do not push people into spending money that they don’t want to spend and the
aim is to stop people from being pressured into buying something or thinking that they are
helping by spending money. Businesses can comply by ensuring that their staff are trained
so they know how to legally be a sales person and by business always telling the truth about
their actions and promotions.
Consumer Credit Acts 1974 and 2006 – Businesses must have a license if they want to sell
goods on credit or sell loans. The act sets out a list of requirements such as they must
update their customers on their accounts and if they fall behind on payments. This is to
protect people from forgetting and then years later getting a large bill from the company
and demanding them to pay. This is required to stop businesses from taking advantage of
consumers. The aim is to stop people from falling into debt as businesses should credit
check people when the ask for a loan or credit. Businesses can comply by ensuring they
have the correct licenses and making sure they have the correct measures in place for when
people take out loans.
Consumer Protection (distance selling) Regulations 2000 – This is to do with selling goods
when there is no face-to-face transaction taking place. The regulation requires businesses to
provide information that is clear and concise so consumers can decide on whether they
should make their purchase from that company. This is required to ensure that people don’t
set up companies online and lie about the reasons and ethics of the business. The aim is to
make sure that consumers have the right information to make informed decisions about
where they spend their money. Businesses can comply by ensuring that they put all the
correct information online that they need to.
Data Protection Act 1998 – This protects people’s personal information from being used
unfairly or without consent. The act sets out a list of rules that must be adhered to, for
