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Unit 3 Introduction to Marketing P2

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Limitations and Constraints – P2

Legal constraints * Sale of Goods Act 1979 * The Consumer Protection from Unfair Trading Regulations 2008 * Consumer Credit Acts 1974 and 2006 * Consumer Protection (Distance Selling) Regulations * Data Protection Act 1998

Sales of Goods Act 1979

Under the Sales of Goods Act 1979 a company has to follow rules and regulations by law; this gives customers certain legal rights such as the right to return an item that may be faulty, if they want a refund or if they want to exchange the item for something else.

All customers are entitled to goods that are:

* As described. * Of satisfactory quality. * Fit for the purpose.

Companies have to abide by the rules and regulations of this law; for example if Tesco were to sell a product that was not of satisfactory quality and not as described this would affect their company as they may face a penalty and/or loose customers.

The Consumer Protection from Unfair Trading Regulations 2008

Some companies use misleading methods of advertisement and sales tactics to increase their sales of their products and/or services; therefore the law and rules for consumer protection from unfair trading regulations were implemented to stop companies from using misleading/unethical ways of advertisement. The law protects consumers from unfair trading practices, such as:

* Pressure selling. * Misleading product offers. * False limited offer notices. * Aggressive sales tactics

This law affects companies as they cannot use misleading ways of advertisement; for example if Tesco used unethical ways of advertising to mislead customers into buying a product of theirs it would be illegal with consequences such as penalties or getting a bad name for their company.

Consumer Credit Acts 1974 and 2006

The Consumer Credit Acts 1974 and 2006 gives

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