Retail Consumer Protection in marketing mangement

Retail Consumer Protection in marketing

1. Consumer Protection
Chris Dutton

2. Consumer Protection Task
Trade Descriptions Act 1968
Sale of Goods Act 1979
Supply of Goods & Services Act 1982
Consumer Protection Act 1987
e Commerce Regulations 2002
Sale & Supply of Goods Act 1994
Unfair Terms in Consumer Contracts Regulations 1999

3. Who are the Consumers
Definition of a Consumer
Individual purchaser or user acting in a
private capacity
Supplier acting in the course of a
business
Goods and services intended for private
use or consumption

4. Why Do Consumers Need
Protecting
Designed to discourage fraudulent
behaviour
Technologically complex goods
The growth of advertising and marketing
High spending power of consumers
Time pressured consumers make quick
decisions

5. Producers Liability for
Breach of Contract
(Common Law)
That the goods are of satisfactory
quality
Fit for the purpose
Producers liability is strict: breach
entitles buyer to reject or claim damages
Victoria Laundry v Newman Industries
Third party liability
Donoghue v Stevenson

6. Producers liability for
the tort of negligence
(Common Law)
A producer is only liable under tort
if he has been negligent
Faults as to:
Design
Manufacturing
Testing
Quality Control
Vacwell Engineering Ltd v BDH Chemicals
Walton v British Leyland
Victims tend not to be experts
therefore Courts may reverse the
“burden of proof”

7. Austin Allegro

8. Supply of Goods and
Services Act 1982
Goods
Sometimes goods exchange outside def in
Sale of Goods Act
Eg
Exchanged for other goods
Exchanged for tokens, labels etc
Exchanged for services

9. Services
Three conditions implied:
- reasonable care & skill
- within a reasonable time
- reasonable charge
(if not already agreed)

10. Consumer Protection Act
1987
Implemented from EU Directive 1985
Strict liability applies
Damage covered by Act:
Death
Personal Injury
Damage to property
Pure economic loss is not covered (except wage
loss)

11. Who is liable?
Manufacturer
Importer
‘Own brander’
Supplier of the product

12. Three types of Defect:
Design defects
Manufacturing defects
Defects in instructions or warnings

13. When is a product defective?
If safety of product is “not such
as persons generally are entitled
to expect”

14. To claim under the Act:
Within 3 years of incident
Within 10 years of producer circulating product

15. Trade Descriptions Act 1968
Two main offences:
Applying a false trade description to any goods or
supplying goods to which a false description is
applied (strict liability)
Knowingly or recklessly making a false statement
in respect of the provision of services, facilities or
accommodation (mens rea required)

16. Misleading Prices
In contract advertised price is invitation to treat
Latest attempt to legislate is Part lll of Consumer
Protection Act
Act covers indications about:
- any conditions attached to price
- future prices
- price comparisons
- actual price consumer will pay

17. Consumer Protection
Institutions
European Union
UK Government
Department for Business, Innovation and
Skills
Home Office
Department of Health
Ministry of Agriculture, Fisheries and
Food
Office of Fair Trading
Food Standard Agencies

18. OFT in Action
Payday lenders face being shut down if they
don’t clean up their act, the Office of Fair
Trading (OFT) has warned.In a damning
statement the OFT said that most of the 50
major payday lenders it has scrutinised
since launching an investigation earlier
this year failed to comply with legal
obligations and expected standards.
The regulator has also warned the UK's 240
payday firms about growing evidence of poor
practices in the sector, which sees some
firms charge an annual percentage rate of
more than 4,000 per cent. (Independent 2012)

19. Consumer Protection
Institutions
Local Authorities
Government Supported Bodies
Consumer Protection Advisory Committee
National Consumer Council
Voluntary Organisations
Consumers Association
Citizens Advice Bureaux
National Federation of Consumer Groups
British Standards Institute

20. Read
Keenan and Riches
Chapter 10, 13 and 14
Other Legislation