P6 Legal factors of Costa - Consumer law in China
Consumer protection laws aim to protect the rights of customers when
they purchase a product or service from any business. This law ensures
that consumers are protected from any fraud or false advertised product,
misleading the customer.
In the UK, if a customer feels that the product they have bought is not
doing what the company has stated, they have a right to bring it back and
get a refund or exchange.
However in China the laws are different as they are a communist country.
Although in 2014, they have had to bring in new laws.
The new law introduces a number of important reforms to the Chinese
retail environment; penalties for fraud and false advertising have been
increased and retailers are now required to accept goods for return within
7 days of purchase unless agreed otherwise.
Where as before these laws, it was a lot harder to return a product and
class-action lawsuits against retailer malfeasance were hard to file. These
laws were changed because 3.8 billion of poor quality goods were sold
between 2010 and 2012.
Customers are an external stakeholder who are very important to any
business, so therefore, if customers are not satisfied with a product they
have bought from Costa, then they may want to return the item.
However because of the laws before 2014, consumers in China wouldn't
have been able to return the faulty product thus resulting in an unhappy
customer which also means that these customers won't be returning back
to Costa, meaning they loose sales in the future.
Managers and directors of Costa may not like the new laws as they would
now be required to give the customer their money back if they are
unsatisfied with the product.
They may also not benefit from the new law where lawsuits against a retail
company have been easier to file. If Costa do get sued, then Costa may
Consumer protection laws aim to protect the rights of customers when
they purchase a product or service from any business. This law ensures
that consumers are protected from any fraud or false advertised product,
misleading the customer.
In the UK, if a customer feels that the product they have bought is not
doing what the company has stated, they have a right to bring it back and
get a refund or exchange.
However in China the laws are different as they are a communist country.
Although in 2014, they have had to bring in new laws.
The new law introduces a number of important reforms to the Chinese
retail environment; penalties for fraud and false advertising have been
increased and retailers are now required to accept goods for return within
7 days of purchase unless agreed otherwise.
Where as before these laws, it was a lot harder to return a product and
class-action lawsuits against retailer malfeasance were hard to file. These
laws were changed because 3.8 billion of poor quality goods were sold
between 2010 and 2012.
Customers are an external stakeholder who are very important to any
business, so therefore, if customers are not satisfied with a product they
have bought from Costa, then they may want to return the item.
However because of the laws before 2014, consumers in China wouldn't
have been able to return the faulty product thus resulting in an unhappy
customer which also means that these customers won't be returning back
to Costa, meaning they loose sales in the future.
Managers and directors of Costa may not like the new laws as they would
now be required to give the customer their money back if they are
unsatisfied with the product.
They may also not benefit from the new law where lawsuits against a retail
company have been easier to file. If Costa do get sued, then Costa may
