Business Studies – 3.4.1 Legal controls related to marketing | e-Consult
3.4.1 Legal controls related to marketing (1 questions)
The Consumer Rights Act 2015 has significantly altered the responsibilities of businesses regarding consumer information and has a profound impact on marketing practices. It strengthens consumer rights and places greater emphasis on transparency and accurate information.
Key changes brought about by the Consumer Rights Act 2015 include:
- Implied Terms: The Act clarifies implied terms in contracts for goods and services. Businesses are now legally obligated to ensure that goods and services are of satisfactory quality, fit for purpose, and as described. This impacts marketing as it sets a higher standard for product descriptions and claims.
- Right to Information: Consumers have a right to be given clear, accurate, and up-to-date information about goods and services before they buy them. This includes information about price, features, and potential risks. Marketing materials must provide this information in a readily accessible format.
- Restrictions on Unfair Terms: The Act prohibits unfair terms in consumer contracts. This means that businesses cannot include terms that are overly harsh or disadvantageous to consumers. Marketing campaigns must not promote or conceal such unfair terms.
- Distance Selling Regulations: The Act strengthens distance selling regulations, providing consumers with greater protection when buying goods and services online or by mail. This includes a right to cancel contracts within a specified period. Marketing must clearly communicate these rights.
- Advertising Standards: The Act reinforces the importance of accurate and truthful advertising. Businesses are held accountable for any misleading or deceptive claims made in their marketing materials.
The impact on marketing is substantial. Businesses must ensure that their marketing materials accurately reflect the quality and features of their products and services. They must provide consumers with all the necessary information to make informed purchasing decisions. Marketing strategies must be aligned with the principles of transparency and fairness. Failure to comply with the Consumer Rights Act 2015 can result in legal action and reputational damage. This has led to a greater emphasis on consumer-centric marketing and a shift away from potentially misleading or deceptive practices.