Free Essay

Governments Role in Consumer Protection & Advertising

In: Business and Management

Submitted By mdreck
Words 2647
Pages 11
U.S. Governments Role in Consumer Protection & Advertising The United States government has continued to grow in size and influence, its effect on marketing is no exception. Consumer protection and product safety include the efforts made by government, nonprofit organizations, businesses, and individuals to create, protect, and enforce the rights of consumers who buy products or services. This may also be identified as consumerism, or the organized efforts of individuals, groups, and organizations to protect the rights of consumers (Pride102). Consumer protection was brought upon through several medians, but is primarily attributed to background legislation. The first major federal law to affect the marketing environment was the Sherman Antitrust Act of 1890, which prohibited contracts, combinations, and conspiracies to restrain trade, in an attempt to discourage monopolies (Pride 73). Many federal laws regarding consumer protection have since followed, such as the Wheeler-Lea Act of 1936 and the FTC Act of 1914. Such legislation is generally the work of the Federal Trade Commission, which was created in the aforementioned FTC Act of 1914, and is considered the primary consumer protection agency at the federal level. By the 1950’s the consumerism movement had a substantial following and consumers began pushing for legal protection against malicious business practices. Two of the most well known and significant consumer activists are Ralph Nader and the late John F. Kennedy. Mr. Nader has had a tremendous effect on car safety through the publication of his book Unsafe at Any Speed. President JFK was also a key consumer activist and created The Consumer Bill of Rights. Many corporations and businesses regulate themselves in an attempt to be better corporate citizens and avoid government interference. Likewise, many trade associations have instituted self-regulatory programs, such as the BBB, Better Business Bureau. Self-regulatory agencies help settle disputes between customers and businesses. Whether for better or worse, the United States government’s role in marketing, specifically consumer protection and advertising, has significantly increased over the past century through background legislation, and the rise of consumerism. “The history of consumer protection in the United States is the story of specific formal legal responses to crises and emergencies that generated great public outrage and required a public response” (Brady). This has led to the creation of federal regulatory agencies with jurisdiction over certain products, as well as consumer protection legislation that allow consumers private rights that can be used to sue a business if harm from the illegal practice is demonstrated. One of the first examples of such legislation was the Sherman Antitrust Act of 1890. It was the first federal law to limit monopolies and is still relevant today, as it has since served as the basis for various antitrust litigations by the federal government. The law attempts to prevent the unnatural increase in prices by the restriction of trade or supply. Therefore, a monopoly achieved through merit is by all means legal, but if a monopoly is raised through the artificial acts to maintain its position atop the marketplace it is not. It also required the United States federal government to investigate and pursue suspicious trusts, companies, and organizations that exhibit questionable practices. Consumer rights legislation has benefited alongside society’s technological and economical advances. For example, laws in the late 1890’s and early 1900’s concerning food purity were a direct result of the mass commercialization of products throughout the industrial revolution. The passage of the pure food and drug legislation, in 1906, came in response to efforts led by crusaders, such as Upton Sinclair, who were concerned about unsanitary conditions and high prices. Mr. Sinclair, author of the novel The Jungle, illustrated the harsh and filthy environment inside the Chicago stockyards. Public reaction to Sinclair's exposition led to an investigation by the federal government and subsequent regulation of food safety (Brady). Following the creation of the pure food and drug act, the major succeeding legislation was the formation of the Federal Trade Commission, by way of the FTC Act of 1914. The FTC is the primary, but not the sole, consumer protection agency at the federal level and oversees an array of consumer protection laws. The principal goal is to afford customers a deception-free marketplace and provide the highest-quality products at competitive prices. The FTC also ensures that advertising is not false or misleading. The FTC may also benefit businesses by helping them to understand laws and assess new marketing methods for each year. It also brings businesses together for hearings and conferences to help firms avoid price fixing, deceptive advertising, and questionable telemarketing practices (Pride 76). Succeeding the Sherman and FTC Acts, in 1938 the Wheeler-Lea Act was formed. It prohibits unfair and deceptive acts and practices regardless of whether competition is injured, and also placed advertising of food and drugs under the jurisdiction of the FTC. This had a substantial impact, because before this amendment the Federal Trade Commission could only restrict practices that were unfair to competitors. This allowed the FTC to administer the protection of consumers as well. The government continued its provisions in 1938, when Congress enacted the Food, Drug and Cosmetic Act, which made manufacturers prove the safety of new drugs before releasing them to the market. The Food and Drug Administration, FDA, is responsible for administering the pure food and drugs acts. It enforces laws and regulations to prevent the distribution of adulterated or misbranded foods, drugs, medical devices, cosmetics, veterinary products, and potentially hazardous consumer products (Pride 76). Such acts were created to guarantee that food, drugs, vaccines, devices, and cosmetics are safe, properly labeled, and pure. Since their origin, the acts have undergone additional amendments, like the 1962 condition that requires manufacturers to prove the effectiveness and safety of drugs before they are marketed to consumers (“Consumer Protection”). The United States government has a significant role in the advertising aspect of marketing as well. Consumers must have readily available and accurate knowledge regarding a product or particular service in order to make an educated and well informed purchase. Federal legislation requires manufacturers to disclose information about the product to better protect potential buyers. For instance, the Fair Packaging and Labeling Act of 1966 is responsible for ensuring that labels identify product information such as quantity and ingredients. Another example of how the government affects marketing, specifically advertising, is witnessed in the Truth in Lending Act of 1968, which requires that credit loan applicants be given accurate information concerning the cost and terms of the applied loan. As stated earlier, the Federal Trade Commission is the federal agency responsible for ensuring that advertising is not false or misleading. The FTC also regulates business between states and enforces consumer protection laws. It is capable of forcing companies to remove false advertising and correct deceptive ads (“Consumer Protection”). To counter deception in the market place consumers took it upon themselves to organize their efforts and protect consumer’s rights. This movement is known as consumerism, its largest forces are consumer advocates, organizations, interest groups, consumer education and legislation. The rise in consumer credit and product safety awareness, led to an increase in consumer protection legislation during the 1960s and 1970s. This was mainly attributed to the rise of consumerism, led in particular by two individuals, President John F. Kennedy and Mr. Ralph Nader. In 1965, Nader published Unsafe at Any Speed, a book that continues to have major implications regarding car safety today and undoubtedly will in the distant future. The book exposed the questionable manufacturing and design practices of automobile manufacturers and exemplified the resistance to implement safety features such as seatbelts and airbags. “Nader's advocacy of automobile safety and the publicity generated by the publication of Unsafe at Any Speed, along with concern over escalating nationwide traffic fatalities, contributed to the unanimous passage of the 1966 National Traffic and Motor Vehicle Safety Act. The act established the National Highway Traffic Safety Administration and marked a historic shift in responsibility for automobile safety from the consumer to the manufacturer. The legislation mandated a series of safety features for automobiles, beginning with safety belts and stronger windshields.” (“Ralph Nader” Wikipedia)
Since Nader’s publication of Unsafe at Any Speed he has gained national recognition for his work in consumer activism, and has organized a network of young supporters dubbed Nader’s Raiders. The group conducts research, writing, and lobbying efforts in a variety of areas related to consumer protection. “The book has continuing relevance: it addressed what Nader perceived as the political meddling of the car industry to oppose new safety features, which parallels the debates in the 1990s over the mandatory fitting of air bags in the United States.” Due to Mr. Nader’s contributions the government has the power to make me wear my seatbelt, or at least punish me if I don’t. Nader has also assisted in the passing of several other noteworthy consumer protection laws, like the Wholesome Meat Act of 1967, Radiation Control for Health and Safety Act of 1968, the Clean Water Act of 1972, and the Toxic Substance Act of 1976 (“Unsafe at Any Speed” Wikipedia). A man who made equally as substantial a contribution for consumer protection was President John F. Kennedy. In 1962 President Kennedy delivered a speech before Congress and presented the Consumer Bill of Rights. It contained and described four basic rights; the right to safety, the right to be informed, the right to choose, and the right to be heard. The right to safety implies that products, when used correctly, should cause no harm to the user of the product, and concerns all products other than automobile vehicles. In other words marketers are not compelled to market a product they know could cause harm to the consumers, and the product must include instructions for safe and proper use. The second right, the right to be informed, states that a business must provide the consumer with enough information to the degree that the individual is capable of making an intelligent and informed product selection. There is legislation that requires specific labeling to ensure this right. The alcohol and tobacco industries are obligated to inform consumers that these products may cause illness and other health related problems. The right to choose states that a consumer should have a variety of alternatives, supplied by different companies, to choose from. Satisfactory quality and a fair price are necessary for the consumer’s protection. The government has many precautions, such as anti-trust legislation, to prevent monopolies and prohibit the practice of price cutting and gouging, in order to ensure the availability of competition in the marketplace. The final right of the four basic rights, the right to be heard, affirms that the consumer has the ability to voice complaints and concerns of a particular product, and will receive full sympathetic consideration, so that the issue may be handled appropriately and accordingly. While there may not to be a federal agency overseeing operations, there are alternatives that aid the consumer if an agreement can not be met. The consumer is not the only party that stands to benefit from such legislation, the marketers can use the information gathered from a consumer’s complaint to modify the product and thus make it more satisfying for all. The abovementioned rights were the only four basic rights described in President Kennedy’s speech before Congress in 1962 (“Consumer Bill of Rights” Wikipedia). Twenty-three years later, in 1985, the United Nations took interest in the concept of consumer rights and expanded the four basic rights to eight basic rights. The four additional rights include; the right to satisfaction of basic needs, the right to redress, the right to consumer education, and the right to a healthy environment. The right to satisfaction of basic needs concerns the access to essential goods and services such as food, water, sanitation, public utilities, education, health care, shelter, and clothing. The right to redress says a consumer has the right to receive a settlement and may include compensation for unsatisfactory services, shoddy goods, and misrepresentation. Another one of the four additional rights is the right to consumer education; that is, a consumer should always have the opportunity to acquire the necessary knowledge to make an informed and intelligent decision regarding goods and services, and must also be aware of the basic consumer rights and responsibilities. The eighth and final right of the Consumer Bill of Rights asserts that one has the right to live and work in a safe environment. It also states that consumer protection is only capable of being implemented in developed nations, due to the fact that fiscal resources are essential to effectively practice consumer protection (“Consumer Bill of Rights” Wikipedia). Businesses attempt to avoid government intervention whenever possible through self-regulation, and several trade associations have developed self-regulatory programs themselves. The principal reason for the existence of self-regulatory forces is to stop or stall the development of laws by federal regulatory groups that regulated their marketing activities. Trade associations frequently institute a code of ethics for which their members must follow or they will assume the risk of exclusion from the trade association. The Better Business Bureau is one of the most well-known self-regulatory groups; it is a system of independent agencies that the local businesses support. If a business continues to violate what are believed to be good business practices, the bureau notifies consumers through the local media, and if the organization is a member of the Better Business Bureau, they may be expelled from the local bureau. The National Advertising Review Board, NARB, regulates cases where an advertiser challenges issues brought up by the NAD about an advertisement. The National Advertising Division manages a self-regulatory program that inspects deceptive advertising claims. The NARB has no official enforcement powers, but if a particular business refuses to cooperate with the decision, the NARB may file a complaint to the FTC. There are several advantages self-regulatory programs have over federal laws and federal regulatory agencies. For example, the formation of a self-regulatory agency is less expensive, guidelines are more appropriate, and self-regulatory programs fill a void that the federal government would otherwise pursue. However, self-regulatory programs often lack the authority to enforce guidelines (Pride 77). Throughout the entirety of this paper I have discussed the United States government’s role in consumer protection and advertising. The marketing environment first felt the governments influence through background legislation, like the FTC, Wheeler-Lea Act, and Sherman Anti-Trust Act. Such legislation was followed by the rise of consumerism, led by consumer advocates Ralph Nader, who wrote the highly controversial and influential book Unsafe at Any Speed, and President John F. Kennedy who delivered The Consumer Bill of Rights to Congress. This movement called consumerism may be described as the organized efforts of individuals, groups, and organizations to protect the rights of consumers. In an effort to showcase social responsibility, good citizenship and prevent government intervention many businesses partake in self-regulation such as the Better Business Bureau. Over the course of the last century or so, government bureaucracy has significantly increased throughout the marketing environment, specifically consumer protection and advertising, by way of background legislation and the rise of consumerism.

Works Cited
Brady, Jillian G. "Consumer Protection in the United States: An Overview." Loyola University Chicago. Web. .
"Consumer Bill of Rights." Wikipedia, the Free Encyclopedia. Web. 18 Oct. 2011. .
"Consumer Protection." Web. .
Pride, William M., and O. C. Ferrell. Marketing. Mason, OH: South-Western Cengage Learning, 2012. Print.
"Ralph Nader." Wikipedia, the Free Encyclopedia. Web. 18 Oct. 2011. .
"Unsafe at Any Speed." Wikipedia, the Free Encyclopedia. Web. 18 Oct. 2011. .
Writer, Phillip KurataStaff. "Consumer Protection Has Deep Roots in U.S. History." America - Engaging the World - 09 Oct. 2007. Web. 18 Oct. 2011. .

Similar Documents

Premium Essay


...The Role and Importance of Organizational Accountability in Managing and Protecting Users’ Data October 2010 This document is provided “as-is.” Information and views expressed in this document, including URL and other Internet Web site references, may change without notice. You bear the risk of using it. This document does not provide you with any legal rights to any intellectual property in any Microsoft product. You may copy and use this document for your internal, reference purposes. You may not modify this document without written consent from Microsoft. Microsoft Corp. • One Microsoft Way • Redmond, WA 98052-6399 • USA All rights reserved. Contents The Evolution of Privacy Models in Computing .................................................................................... 1  The Principles of Accountability ......................................................................................................... 2  The Use–and-Obligations Model ........................................................................................................ 3  A Privacy Governance Framework ...................................................................................................... 4  Conclusion....................................................................................................................................... 5  1 The Role and Importance of Organizational Accountability in Managing and Protecting Users’ Data The Evolution of......

Words: 2353 - Pages: 10

Premium Essay

Legal Studies

... compliance  and  non-­‐compliance  within  consumer  law.         Unjust  contracts  –  common  law  and  statutory  clauses   A contract is an agreement involving two or more parties in which legal obligations are created that are legally enforceable. It does not have to be in writing but some form to be in order to have legal recognition. Moreover, contracts have a significance role is promoting compliance and restricting non compliance. Thus both common law and statue protection exists to improve protection against. unjust contracts. Common has evolved signfianctly and two of it’s more fundamental aspects in promoting just contracts include Duress and unconscionable dealing. Duress – actual or threatened violence if they do not sign. CASE LAW – Barton v Armstrong (1975), whereby Barton was forced to sell shares, however was overturned at Privy Council. Moreover, creating precedent of duress as a clause to make a contract invalid. Furthermore, unconscionable dealings are also banned under CASE LAW - Commercial Bank of Australia Ltd v. Amadio (1983). Whereby, defining it as “Unconscientious use of a superior position or bargaining power to the detriment of a party who suffers from a special disability”. While the common law provides mechanisms for remedying injustice, they were fairly limited and were often difficult to prove in court. Additionally, Statutory protection for consumers has increased considerably over......

Words: 805 - Pages: 4

Free Essay


...and online retail is known as e-tail. E-commerce or electronic commerce is generally considered to be the sales aspect of e-business. If we want to define a term e – commerce we can choose between various definitions. According WTO it is “production, distribution, marketing, selling and expedition of goods and services by using of electronical measures.” According the Commission that formulates and regulates international trade in cooperation with the World Trade Organisation – UNCITRAL it means „any information in form of data message used in context of commercial activities.” OECD defines an e-commerce as „an electronic transaction is the sale or purchase of goods or services, whether between businesses, households, individuals, governments, and other public or private...

Words: 8063 - Pages: 33

Premium Essay

Principles Of Ethical Advertising

...Ethical Advertising The Ethical Advertising Standard (EAS-405) states that “all advertising should be legal, decent, honest and truthful.” (International Charter, 2012) It continues by adding that all ads should be prepared with a due sense of social responsibility and that they should conform to principles of fair competition. (International Charter, 2012) EAS-405 consists of 25 articles that cover all aspects of advertising from decency and honesty to asterisks and abbreviations. Article 5 corresponds to truthful presentation. The article reads as follows: 1. Advertisements should not contain any statement or visual presentation which directly or by implication, omission, ambiguity or exaggerated claim is likely to mislead the consumer,...

Words: 1385 - Pages: 6

Premium Essay

Effectiveness of Asci in Controlling ‘Obscene’ and ‘Misleading’ Advertisements on Television

...Title of the Paper EFFECTIVENESS OF ASCI IN CONTROLLING ‘OBSCENE’ AND ‘MISLEADING’ ADVERTISEMENTS ON TELEVISION ABSTRACT The Advertising Standards Council of India (ASCI) is a self regulatory voluntary organization of the advertising industry established in 1985. ASCI and its Consumer Complaints Council (CCC) deals with the complaints received from Consumers and Industry, against advertisements which are considered as False, Misleading, Indecent, Illegal, leading to Unsafe practices, or Unfair to competition, and consequently in contravention of the ASCI Code for Self-Regulation in Advertising. As the Indian market has grown, the role of advertising as an important and legitimate means for the seller to awaken interest in his products or services has gained currency. But the debate on where one draws the line is something the industry is grappling with. As a self-regulatory voluntary organization of the Indian advertising industry, ASCI have an important role to play, often with limited powers. In 2010, 777 complaints had been received against 190 ads, of which 104 were upheld. In this research paper, researcher will study how effectively ASCI and CCC are dealing with advertisements which are obscene and misleading in nature. What are the criteria for calling an advertisement obscene or misleading? What procedure they follow when they receive any complaint against any advertisement? How much time they generally take to work on any complaint received? How serious......

Words: 4677 - Pages: 19

Premium Essay

Consumer Protection

...When we approach the market as a consumer, we expect value for moneyi.eright quality, right quantity, right prices, information about the mode of use, etc. But there may be instances where a consumer is harassed or cheated. An Act to provide for the better protection of the interest of consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumer disputes and for matters connected therewith. International Scenario: The process of development coupled with increasing liberalisation and globalisation across the country has enabled consumers to realise their increasingly important role in society and governance. However, concentration of the market power in the hands of a select few has affected consumers’ behaviour over time. In a developing country like India where the incidence of poverty and unemployment is very high and the level of literacy is very low, the people face a volume of problems, particularly in the context of consumer related issues. Unlike in the developed world, consumers in these countries have not been able to play a greater role in the development process. The purpose of economic planning is to allocate resources, as far as possible, for the maximum satisfaction of consumers’ needs. Any goods or services produced in an economy are ultimately meant for consumers. There is a logical, moral and political force in the proposition that the consumers themselves should have......

Words: 1391 - Pages: 6

Premium Essay

The Role and Function of Law

...The Role and Function of Law Paul Mullen LAW/421 July 30, 2015 Ms. Machelle Thompson JD The Role and Function of Law Law has both vital functions in society and an essential role in business. In American society, governments create law to enable individuals to live freely and with fairness. It functions as a catalyst for civilized living. In American business, laws provide a basis for fair trade and commerce and allow structured business relations. American government creates laws to resolve domestic and foreign legal disputes both public and private. In the marketing industry, law plays a pivotal role in regulating both civil and criminal liability to consumers. In both society and business, law serves both essential functions and an important role. The function of law in American society is to provide individuals with the legal ability to live their lives with fairness and equality. By having a central controlling authority, such as local, state, and federal government, individuals have a specific pre-determined set of agreed-upon rights, responsibilities, and consequences (Melvin, 2011). These pre-determined agreed-upon rights, responsibilities, and consequences include the structure of government, the powers entrusted to government, and the rights of individuals within that government. Three examples of an individual’s governing law within American society are constitutional law, statutory law, and common law. Government constantly......

Words: 884 - Pages: 4

Premium Essay

Busn Law monthly users on social media outlets like Facebook, Twitter etc.; business have a global advantage for advertising and connecting their product/s or service/s or even establish business relationship with others companies or partners around the globe. This paper will focus on the social media outlets known as Facebook and discussed the four components of the social media marketing manager. It will explain the methods of alternative dispute resolution and determine the effective genuine disputes. The paper will go into detail about how the federal government control on consumer transaction across the state line. It will also examine the three branches of government and the impact on regulation of the consumer transaction via social media outlets like Facebook. Lastly it will explain the agency relationship for using the site for advertising. Legal Astute Managers Legal astuteness refers to the ability of the management communicate well with counsel and work together to solve difficult problems (Bagley,, 2014). The use of legal astute manger will mitigate the risks involved in transaction through cyberspace. Many companies use social media outlets such as Facebook to market their products to a specific target markets not just nationally but internationally as well. Legal astuteness manager elements consist of 4 components which each has different roles. The four component of a legally astute manager have been defined as set of value laden attitudes,......

Words: 1190 - Pages: 5

Premium Essay


...that the advertised product is no longer available or is of poor quality. Bait and switch is a crime in most of the states and if damages are proved, it can be the basis for a personal lawsuit for false advertising ( 1. Betty drove three hours in one-hundred degree heat. Explain if this fact has any bearing on whether or not the dealer must perform in accordance with the published advertisement.  No. A dealership is not required to sell a person a car just because that person had a hard time getting to the dealership. Generally, an ad is not to offer but invitations for offers. Betty might argue that she relied to her the doctrine of detrimental reliance on the ad, the fact that Betty had some hardship to make her offer to purchase the truck does not obligate the dealership to accept her offer. Every business that deals with the general public must be aware of the various laws that have been passed to protect consumers. If you sell merchandise or provide services to consumers, you are subject to the rules and regulations set forth by the Federal Trade Commission. “The Bureau of Consumer Protection’s mandate is to protect consumers against unfair, deceptive, or fraudulent practices. The Bureau enforces a variety of consumer protection laws enacted by Congress, as well as trade regulation rules issued by the Commission. Its actions include individual company and industry-wide investigations, administrative and federal court......

Words: 1028 - Pages: 5

Premium Essay

Role and Functions of Law

...Role and Functions of Law Travis Martin LAW/421 Bernice Jenkins Role and Functions of Law The successful operation of business and society depends heavy heavily upon the function and role of law. Regulating behavior in respect to the general society is the primary purpose of law. Law establishes a protection of guidelines for mankind, animals, and the environment regarding safety issues and concerns. The term “law” has a variety of meanings for defining and describing it throughout history. However, a general acceptable definition of law is a body of rules for the action, conduct, or behavior prescribed by a controlling power of authority with legal binding force (Black’s Law Dictionary, 2013). Law can also take the form of a written code arranged and prescribed by an elected legislative body of judicial decisions, and actions of government agencies. In American law, the current state of law concern itself with common characteristics that create duties, obligations, and rights reflecting acceptable views of a given society (Melvin, 2011). The following contents of this paper cover the functions and role of law in business and society. It also discusses the functions and role of business law in the automotive industry. It is important to indicate that originally, law dealt with the concern of problems and issues regarding ownership of property. Today’s modern legal doctrines deal with complex system of principles and protections for law that provides......

Words: 1006 - Pages: 5

Premium Essay

Role and Functions of Law

...Role and Functions of Law Mandy Reitz BA 316 Law is a vital part of our society and culture. The structure of every civilized society is developed and maintained through law. There are several roles that law participates in regarding society and business. I am currently in the Army and law is very influential to all military operations. Military personnel are subject to federal law and military regulations. Rules and regulations are the foundations for the military profession. The case of Cipollone v. Liggett is a fascinating doctrine that illuminates how state and federal law relates to our society. This essay will provide insight to the role and functions of law in our society. Functions of Law in Business and Society Law is crucial to daily operations in people’s personal and professional life. The function of law is to develop structure, assign precise amounts of power to different branches of government, and provide protection to citizens. (Melvin, 2011) Ethical standards are the basis to developing a strong structure to use as a baseline when creating laws. Society dictates the need for certain laws. A highly ethical and adapting foundation must be in place to build a civilized society. Law is responsible for issuing power to the branches of government. It is vital to a democracy to ensure that there are checks and balances. Power needs to be split between all branches to protect citizens from a dictatorship. A proper balance of power helps to develop...

Words: 864 - Pages: 4

Premium Essay

Government Intervention in Global Business

...Intervention in the market What are the main reasons for government intervention? The main reasons for policy intervention are: •To correct for market failure •To achieve a more equitable distribution of income and wealth •To improve the performance of the economy Options for government intervention in markets There are many ways in which intervention can take place – some examples are given below Government Legislation and Regulation Parliament can pass laws that for example prohibit the sale of cigarettes to children, or ban smoking in the workplace. Employment laws may offer some legal protection for workers by setting maximum working hours or by providing a price-floor in the labour market through the setting of a minimum wage. The economy operates with a huge and growing amount of regulation. The government appointed regulators who can impose price controls in most of the main utilities such as telecommunications, electricity, gas and rail transport. Free market economists criticise the scale of regulation in the economy arguing that it creates an unnecessary burden of costs for businesses – with a huge amount of “red tape” damaging the competitiveness of businesses. Fiscal Policy Intervention Fiscal policy can be used to alter the level of demand for different products and also the pattern of demand within the economy. Indirect taxes can be used to raise the price of de-merit goods and products with negative externalities......

Words: 821 - Pages: 4

Premium Essay

Consumer Behaviour, migration of rural people into cities, remittance of money, family members settled abroad have increased income level and buying power of villagers. II. Political factors:- The government have taken initiative for economic development of rural areas and have invested heavily in agriculture, irrigation, electricity, khadi and village industries and infra structure facilities such as roads, communication, hospitals, school, and banking. The initiatives certainly let to rural prosperity and opportunities for the marketers. III. Technological development:- The rapid expansion of telecommunication facilities and mobile phone has provided opportunities for rural people to keep in touch with men and markets. Development of TV networks and reasonable channels has enabled the marketers to pass on message about product and services to rural people. In rural areas especially in large villagers and villagers near to towns and cities, children and youth have accused to information such as job opportunities, national news, weather conditions, bank loans etc..IT and internet are sure to spread up exchange of information in rural india though at a slower rate compare to urban market IV. Legal :- The government has come out with legislative measures to protect the interest of consumers some of the important ones are:- a. Money lenders:- The money lenders advance long term loans against security of land over period of time manipulate...

Words: 1864 - Pages: 8

Premium Essay

Customer Stakeholder

...or wrongness of specific firm actions independently of any social or stakeholder obligations.^ Customers are key stakeholders that help establish the firm's reputation and identification. For example, today Procter and Gamble is considered a textbook marketdriven global powerhouse with billion-dollar brands such as Bounty, Olay, Tide, Crest, and Folgers.^ Understanding customer needs and wants and providing customers with high-quality products are the key to the company's success. A market orientation focuses on an understanding of customers' expressed and latent needs and development of superior solutions to the needs.* Such an approach selects to elevate the interests of one stakeholder—the customer—over those of others. another in advertising campaigns, each declared that they provided the 'freshest' ingredients. The matter was taken to court and resolved through civil litigation. The importance of creating customer relationships and creating value for the customer as a part of market orientation should lead to increased performance. This article provides insights on foundations for ethical customer relationships, contingent knowledge about customers as stakeholders, and insights on establishing a balanced stakeholder orientation from a managerial perspective. Foundations for Ethical Customer Stakeholder Relationships The relationship between a customer and a firm exists because of mutual expectations built on trust, good faith, and fair dealing in their interaction. In...

Words: 2793 - Pages: 12

Premium Essay

The Functions and Role of Law in Business and Society

...The Functions and Role of Law in Business and Society Henry David Thoreau once said, “If the machine of government is of such a nature that it requires you to be the agent of injustice to another, then, I say, break the law.” (Henry David Thoreau, n.d.) Mr. Thoreau was perceptive in that he knew in government, sometimes a person may have to do something that is not favorable in the eyes of the majority, but the right thing to do for a minority group of people. In the proceeding pages, I will attempt to define the functions and role of law in business and society. I will discuss the functions and role of law as it pertains to a previous job. The Functions and Role of Law in Business and Society Cipollone brought suit against Liggett for violation of several New Jersey consumer protection statutes alleging that Liggett (and other cigarette manufacturers) were liable for his mother’s death because they engaged in a course of conduct including false advertising, fraudulently misrepresenting the hazards of smoking, and conspiracy to deprive the public of medical and scientific information about smoking. Liggett urged the court to dismiss the state law claims contending that the claims related to the manufacturer’s advertising and promotional activities were preempted by two federal laws: (1) the Federal Cigarette Labeling and Advertising Act of 1965, and (2) the Public Health Cigarette Smoking Act of 1969. (Melvin, p. 33, 2011) It can be said that......

Words: 833 - Pages: 4