Revision - Consumer Protection

Sale of Goods Act

Helps a consumer get compensation if things go wrong

Requirements of the ACT

1. Match the description (if it says leather it must be leather)

2. Of reasonable quality in relation to price (no rips in clothes, electrical to be safe)

3. Fit for purpose (do what is expected,

Trade Descriptions Act

Makes certain activities illegal -

Requirements of the ACT – businesses MUST NOT

1. Give false information2. Fail to give important information3. Act aggressively

Effects on business

Knowing the lawCan be time consuming and

expensive if experts need to be hired

Compliance costsHaving to give refunds and

replacements. Providing and updating info on packaging, meeting quality

standards

Benefit Can market the benefits and gain good reputation for giving value

for money

Ensures all businesses are providing a minimum level of

quality – larger businesses have advantage due to begin

able to meet costs easier

Exam question – 6 marks

YESConsider costs involved (refunding holiday costs etc)Without added cost – increased profit margin

NOType of business relies on quality of service anyway (so would they do it anyway?)Big company can use advantage over smaller ones who will “feel” the costs more