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Unit 3 - Introduction to marketing P2

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Unit 3 - Introduction to marketing P2
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 consumers protection when purchasing goods and/or services on credit. If there is an error in the agreement during such purchases consumers will

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