Unit 3 – P2
Mahbub Rahman
,Mahbub Rahman – Unit 3 – P2
Table of Contents
Introduction .............................................................................................................................................2
Legal Constraints......................................................................................................................................2
Sales of Goods Act 1979 ......................................................................................................................2
Consumer Protection from Unfair Trading Regulations 2008 .............................................................2
Consumer Credit Acts 1974 and 2006 .................................................................................................3
Consumer Protection (Distance Selling) Regulations 2000 .................................................................3
Data Protection Act 1998 ....................................................................................................................4
Voluntary Constraints ..............................................................................................................................4
Advertising Standards Authority (ASA)/Codes of Advertising Practice ...............................................4
Pressure Groups.......................................................................................................................................4
Consumerism ...........................................................................................................................................5
Acceptable language ................................................................................................................................5
Conclusion ................................................................................................................................................5
Bibliography .............................................................................................................................................6
1
, Mahbub Rahman – Unit 3 – P2
Mahbub Rahman – Unit 3 – P2
Introduction
For this task, I am going to describe the limitations and constraints of the marketing used by
Coca-Cola. This will include legal constraints, voluntary constraints, consumerism and
acceptable language.
Legal Constraints
Legal constraints can be defined as the laws that cause constraints on businesses and
customers, creating an impact how they sell and purchase products.
Sales of Goods Act 1979
This act demands that goods sold are exactly as described, and are of a satisfactory
standard. This affects Coca-Cola’s marketing directly, because it forces them to describe
their products as they are. They legally cannot make false claims about their products in
order to help boost sales, so all information that is given to consumers must be correct. For
example, the package will say the amount of sugar that one bottle of Coke may have, so this
must be true in order to abide by legal rules, and cannot be false just to encourage people
to buy it. This shows us the limits it brings upon Coca-Cola’s marketing. This act also gives
customers the right to have their purchased product returned/refunded if the description is
not accurate, or if the product is damaged. However, from this viewpoint, it can also be
argued that that this causes constraints on the customer. This is because the customer will
be unable to make any complaints about the product if Coca-Cola is abiding by this law,
therefore impacting the customers.
Consumer Protection from Unfair Trading Regulations 2008
This act is designed to protect customers, ensuring they receive fair treatment and honesty
from businesses. This is similar to the Sales of Goods Act, and demands that businesses
cannot use misleading information. It also states that businesses cannot use aggressive sales
tactic or dishonest promotions. For example, Coca-Cola cannot claim that one of their stores
are about to close down when it isn’t, in order to have a ‘closing-down’ sale, which urges
customers to purchase products from that store (this is an example of dishonest
promotions). An example aggressive sales tactics is if the person selling a product diminishes
a customer’s freedom of choice by using some form of coercion to make them buy the
product. This limits Coca-Cola’s marketing activities, as they cannot force customers to buy
their products and they cannot give misleading information to convince us to buy their
products, therefore impacting how the business sells their products. This also shows a
positive impact on the customer, as they are not deceived by Coca-Cola which gives them
more freedom to choose if they want to purchase their products. The act also applies when
businesses are dealing with each other. If a company doesn’t comply with these regulations,
then lengthy bans and prosecutions may occur.
2
Mahbub Rahman
,Mahbub Rahman – Unit 3 – P2
Table of Contents
Introduction .............................................................................................................................................2
Legal Constraints......................................................................................................................................2
Sales of Goods Act 1979 ......................................................................................................................2
Consumer Protection from Unfair Trading Regulations 2008 .............................................................2
Consumer Credit Acts 1974 and 2006 .................................................................................................3
Consumer Protection (Distance Selling) Regulations 2000 .................................................................3
Data Protection Act 1998 ....................................................................................................................4
Voluntary Constraints ..............................................................................................................................4
Advertising Standards Authority (ASA)/Codes of Advertising Practice ...............................................4
Pressure Groups.......................................................................................................................................4
Consumerism ...........................................................................................................................................5
Acceptable language ................................................................................................................................5
Conclusion ................................................................................................................................................5
Bibliography .............................................................................................................................................6
1
, Mahbub Rahman – Unit 3 – P2
Mahbub Rahman – Unit 3 – P2
Introduction
For this task, I am going to describe the limitations and constraints of the marketing used by
Coca-Cola. This will include legal constraints, voluntary constraints, consumerism and
acceptable language.
Legal Constraints
Legal constraints can be defined as the laws that cause constraints on businesses and
customers, creating an impact how they sell and purchase products.
Sales of Goods Act 1979
This act demands that goods sold are exactly as described, and are of a satisfactory
standard. This affects Coca-Cola’s marketing directly, because it forces them to describe
their products as they are. They legally cannot make false claims about their products in
order to help boost sales, so all information that is given to consumers must be correct. For
example, the package will say the amount of sugar that one bottle of Coke may have, so this
must be true in order to abide by legal rules, and cannot be false just to encourage people
to buy it. This shows us the limits it brings upon Coca-Cola’s marketing. This act also gives
customers the right to have their purchased product returned/refunded if the description is
not accurate, or if the product is damaged. However, from this viewpoint, it can also be
argued that that this causes constraints on the customer. This is because the customer will
be unable to make any complaints about the product if Coca-Cola is abiding by this law,
therefore impacting the customers.
Consumer Protection from Unfair Trading Regulations 2008
This act is designed to protect customers, ensuring they receive fair treatment and honesty
from businesses. This is similar to the Sales of Goods Act, and demands that businesses
cannot use misleading information. It also states that businesses cannot use aggressive sales
tactic or dishonest promotions. For example, Coca-Cola cannot claim that one of their stores
are about to close down when it isn’t, in order to have a ‘closing-down’ sale, which urges
customers to purchase products from that store (this is an example of dishonest
promotions). An example aggressive sales tactics is if the person selling a product diminishes
a customer’s freedom of choice by using some form of coercion to make them buy the
product. This limits Coca-Cola’s marketing activities, as they cannot force customers to buy
their products and they cannot give misleading information to convince us to buy their
products, therefore impacting how the business sells their products. This also shows a
positive impact on the customer, as they are not deceived by Coca-Cola which gives them
more freedom to choose if they want to purchase their products. The act also applies when
businesses are dealing with each other. If a company doesn’t comply with these regulations,
then lengthy bans and prosecutions may occur.
2
