2.5 - Legislation

2.5 - Legislation

1. Keywords

   • Legislation
     • A set of rules that governs the way society operates. It is another term for laws.
   • Consumer Laws
     • Laws that have been introduced to prevent business from treating their customers unfairly.

2. Consumer rights act 2015

   • Consumer laws are laws that have been introduced to prevent businesses from treating their customers unfairly.
   • The consumer rights act 2015 provides consumers with protection and clear rights when buying goods and services.
   • The act covers product quality, returning goods, replacements and delivery rights.
   • Products sold to consumers must be of a satisfactory quality, fit for purpose and as described, e.g. gluten-free bread must be gluten-free.
   • Goods delivered to home are protect against going missing and getting stolen.
   • They are also protected against late delivery.
   • Businesses cannot put unfair terms in contracts with customers, e.g. hidden fees for flights.

3. Consumer laws

   • Product safety
     • Food and safety act
       • 1990- makes it illegal to sell unsafe food that can cause illness.
     • Food and drug act
       • 1984- Things can and cannot be added to food and makes it illegal to make food in unclean buildings.
     • Consumer protection act
       • 1987- stops businesses selling dangerous products to consumers and makes them liable for any injures caused by defective products.
   • Product labelling
     • Labelling of food regulations
       • 1970- Packaging must contain a list of ingredients on the label.
     • Weights and Measures Act.
       • 1986- the weight or measure of the contents of the product should be correct and stated on the packet.
     • Unfair trading regulations
       • 2008- Makes it illegal to give consumer incorrect information on packaging and labelling.
   • sale of products
     • Consumer credit act
       • 1974- stops businesses charging very high interest rates on loans, e.g. car loans.
   • Using information
     • Consumer Misuse act
       • 1990- prevents people looking at information stored on computers they have no right to read.
     • data protection act
       • 1988- Controls the use of consumers' information.

4. Effects of consumer law on business

   • Drawbacks include increases in the cost of production, e.g. out of date food cannot be sold.
   • Businesses cannot sell customer details for extra money without customer permission.
   • Benefits of consumer laws include: the law creates more trust with customers so that could result in higher sales.
   • Consumer laws mean all businesses have to provide safe goods so competition is fair across the market or industry.