The Impact of Legislation on Marketing (Cambridge (CIE) O Level Business Studies)

Legal Controls & Marketing Strategy

• Governments often implement laws that regulate business decisions or behaviour in relation to marketing

• Key areas of legislation include 

  • The safety of products

    • It is illegal to sell products which have serious flaws

      • Retailers and manufacturers can be held responsible for any harm caused

  • The standard and quality of products and services

    • Products must be of satisfactory quality and fit for the purpose intended by the consumer

  • Advertised weights and measures of products

    • It is illegal to sell underweight goods or use inaccurate weighing equipment

  • The rights of customers if they are unhappy with their purchase

    • When customers purchase products online, they have 14 days in which to return the product

  • The product information that must be given to customers

    • Products must perform as described on the label or by the retailer

    • Certain details must be included on some packaging, e.g. health warnings

  • False claims being made about prices

    • Misleading pricing claims such as ‘25% off for this week only’ when the product was being sold for the same price the previous week are not allowed

Examples of consumer protection legislation

• The Australian Consumer Law protects consumers from unfair and unsafe business practices when buying goods and services, including

  • Unfair trading

  • Consumer guarantees

  • Door-to-door sales and direct marketing

  • Product safety

• In the UK, the Consumer Rights Act (2015) protects consumers from unfair and dishonest business practices

  • It covers the product or service, returns, repairs, replacement and delivery