Unit 3 Introduction to Marketing
Task 2 (P2)
In this task I will be using real life examples to describe the limitations and constraints that are
applied to marketing. They will include references to legislation, industry codes of practice, the
advertising standards authority and pressure groups.
Trade description act
Trade description act is the act that deals with any seller that are not being honest in their products
description, goods and services. Traders are convicted with an offence if they’re caught
selling/trading using false trade description to an item or service.
Sales of goods act
As a business seller, it is compulsary that the sales of goods act must be abided by. The sales of
goods act means they must sell an item at a good quality. Also this act is important, this is because
when a seller is selling an item, they must please the buyer and the buyer must be happy with it.
This is known as ‘conform to contract’. However, if the item/product doesn’t meet the consumers
expectiation, they then have the right to ask and receive a refund or an exchange. In most cases, the
price of the item determines whether they should get a refund as it may not match the standard of
the description which is presented to all consumers.
An example of companies who are known to be ‘misleading’ their customers is curry pc world and
comet. The guardian reports that both Currys and comet are posing poor quality advice to their
consumers. They have also reported that both companies are failing to propose a basic consumer
right. Both currys and Comet were busted through watchdogs were undercovers investigated the
situation by acting as if they’re a normal consumer.
(http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8281828/Currys-and-
Comet-staff-misleading-customers-watchdog-finds.html)
Consumer Credit Act 1974/2006
The consumer credit act is the act that provides regulation and licensing to all suppliers that provide
to their consumers. The act apply to businesses offering goods and services on credit, in some cases
for companies that lend funds to some consumers. E.g. Bank loans. The OFT (office of fair trading) is
the organisation which gives license to traders, also makes sure the traders aren’t breaching the act.
If companies are violating the act, consumers must complain to the FOS (financial ombudsman
service), the FOS settles situations linking to the consumer credit act. There is an age limit of 18
years old for those that are purchasing products on credit. Companies must state their APR on their
contracts for consumers to be aware of when signing to purchase products.
Data protection Act
The data protection act, this rule helps protect the pupil’s information from being abused which is
held by the company. The information stored by the businesses on data bases have a various policy
attached to it, these includes; obtaining fairly and lawful, must be accurate and up to date,
administered in line with your obligation, stored for a while; kept no longer than five years, used
only for the purpose which was stated from the start of the contract and only subjected to the
procedures as it’s a highly important document and must be prevented from any accidental loss,
destruction and any sort of damage to the personal detail.
An example of the ‘data protection act’ being breached; in 2006, Nationwide Building Society was
involved in a situation where an unencrypted device had been stolen from the company, this device
contained personal data of up to 11million savers. The data wasn’t only gone missing but it put
Task 2 (P2)
In this task I will be using real life examples to describe the limitations and constraints that are
applied to marketing. They will include references to legislation, industry codes of practice, the
advertising standards authority and pressure groups.
Trade description act
Trade description act is the act that deals with any seller that are not being honest in their products
description, goods and services. Traders are convicted with an offence if they’re caught
selling/trading using false trade description to an item or service.
Sales of goods act
As a business seller, it is compulsary that the sales of goods act must be abided by. The sales of
goods act means they must sell an item at a good quality. Also this act is important, this is because
when a seller is selling an item, they must please the buyer and the buyer must be happy with it.
This is known as ‘conform to contract’. However, if the item/product doesn’t meet the consumers
expectiation, they then have the right to ask and receive a refund or an exchange. In most cases, the
price of the item determines whether they should get a refund as it may not match the standard of
the description which is presented to all consumers.
An example of companies who are known to be ‘misleading’ their customers is curry pc world and
comet. The guardian reports that both Currys and comet are posing poor quality advice to their
consumers. They have also reported that both companies are failing to propose a basic consumer
right. Both currys and Comet were busted through watchdogs were undercovers investigated the
situation by acting as if they’re a normal consumer.
(http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8281828/Currys-and-
Comet-staff-misleading-customers-watchdog-finds.html)
Consumer Credit Act 1974/2006
The consumer credit act is the act that provides regulation and licensing to all suppliers that provide
to their consumers. The act apply to businesses offering goods and services on credit, in some cases
for companies that lend funds to some consumers. E.g. Bank loans. The OFT (office of fair trading) is
the organisation which gives license to traders, also makes sure the traders aren’t breaching the act.
If companies are violating the act, consumers must complain to the FOS (financial ombudsman
service), the FOS settles situations linking to the consumer credit act. There is an age limit of 18
years old for those that are purchasing products on credit. Companies must state their APR on their
contracts for consumers to be aware of when signing to purchase products.
Data protection Act
The data protection act, this rule helps protect the pupil’s information from being abused which is
held by the company. The information stored by the businesses on data bases have a various policy
attached to it, these includes; obtaining fairly and lawful, must be accurate and up to date,
administered in line with your obligation, stored for a while; kept no longer than five years, used
only for the purpose which was stated from the start of the contract and only subjected to the
procedures as it’s a highly important document and must be prevented from any accidental loss,
destruction and any sort of damage to the personal detail.
An example of the ‘data protection act’ being breached; in 2006, Nationwide Building Society was
involved in a situation where an unencrypted device had been stolen from the company, this device
contained personal data of up to 11million savers. The data wasn’t only gone missing but it put
