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    Consumer Protection

    Uploaded by

    Emmanuel George
    This notes is prepared for the use of O'Level Commerce students of Cambridge University and London University.If you would like to get a copy of this document Please feel free to write to me at [email protected]

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    Attribution Non-Commercial (BY-NC)
    Download as DOC or read online from Scribd

    Consumer Protection

    Uploaded by

    Emmanuel George
    537 views4 pages
    This notes is prepared for the use of O'Level Commerce students of Cambridge University and London University.If you would like to get a copy of this document Please feel free to write to me at [email protected]

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    © Attribution Non-Commercial (BY-NC)

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    This notes is prepared for the use of O'Level Commerce students of Cambridge University and London University.If you would like to get a copy of this document Please feel free to write to me at [email protected]

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC or read online from Scribd
    Download as doc
    537 views4 pages

    Consumer Protection

    Uploaded by

    Emmanuel George
    This notes is prepared for the use of O'Level Commerce students of Cambridge University and London University.If you would like to get a copy of this document Please feel free to write to me at [email protected]

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC or read online from Scribd
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    Reasons why consumers need protection

    • Prices might be fixed artificially high either by one firm or by a group of firms
    acting together.
    • Misleading price reductions might be offered.
    • Customers might not receive the correct weight or quantity of goods.
    • Advertisements might make false claims for goods.
    • Inferior and even dangerous ingredients and components might be used in
    production to keep costs down.

    METHODS OF SAFEGUARDING THE CONSUMERS

    1. CONSUMER PROTECTION LAWS


    a) Sale of Goods Act 1979:
    The main provisions are:
    • Goods must suit the purpose for which they are sold.
    • Goods sold by description must fit the description.
    • Goods sold by sample must correspond with the sample.
    • Goods must be of merchantable quality.

    In the event of any of these conditions not being fulfilled, buyers are normally
    entitled to choose whether the retailer refunds the money, replaces the goods or
    repairs them.

    b) Trade Description Act 1968:


    This Act lays down penalties for traders who deceive the public by making false
    claims for their goods and inaccurate price comparisons. It is an offense to claim
    that an article is worth £10 and is sold for £7, when actually it is worth less than
    £10. Likewise a seller should not claim that his articles are unbreakable or
    waterproof unless they actually are. This Act is enforced by trading standards
    officers.

    c) Fair Trading Act 1973:


    This Act is controlled by a Director General who is assisted by the Consumer
    Protection Advisory Committee. There are some recommendations:
    Page 1
    Commerce – Students’ Guide
    Department of Business and Computing

    • Retailers are not allowed to quote manufacturers’ recommended prices.


    • Shopkeepers are forbidden to have notices such as, “No Cash Refunded” as it
    will mislead a consumer as to his rights.
    • Traders who are selling goods must not pretend to sell them as private
    citizens.
    • The Act sets codes of practice for traders to follow so that customers are
    satisfied.

    d) Consumer Protection Act 1987:


    Sometimes consumers are endangered by goods they buy. This Act imposes a
    duty on manufacturers to supply safe products. Failure to do so may render a firm
    to pay unlimited compensation. For example, a gas burner must have a guard,
    which prevents clothing from touching the flame.

    e) Food and Drugs Act 1955:


    This Act controls the contents of food products and their labeling. It is enforced by
    the local environmental health department. It is also concerned with the
    ingredients in food items. For example:
    • Jam must contain a minimum proportion of the named fruit.
    • Meat pies must contain 25% of meat.
    • At least 50% by weight of sausages must be meat.

    2. CONSUMER PROTECTION AGENCIES (ORGANIZATIONS)

    a) National Consumer Council:


    The NCC, which was established in 1975 by the Government, has members from
    trade unions, parliament, industry and independent consumer organizations. Their
    role is to make the consumers’ view known to the government. The NCC has
    made strong representations to the government about bus services, optical
    services and shop opening hours.

    b) Citizens Advice Bureau:


    Their role is to act as a mediator between consumers and traders in areas where
    there is no consumer protection agencies.

    2 Prepared By: Emmanuel George


    Consumer protection

    c) The British Standards Institution:


    It lays down standards for a manufacturer to follow. The BSI cannot enforce its
    recommendations, as it is an independent organization. The kite mark of the BSI
    is regarded as a sign of quality by consumers, due to extensive tests by BSI
    inspectors.

    d) The Media:
    The press, television and radio are very important in dealing with individual
    complaints. Some newspapers run their own consumer protection agencies. They
    make a consumer aware of his rights.

    e) The Consumers’ Association:


    The Consumers’ Association is an independent and non-profit making
    organization. It publishes a monthly magazine “Which?” In its report, “Which?” the
    list of good and bad points of a particular product are published. This enables a
    consumer to choose the best product from a range of products. The association
    also advises its consumers on consumer problems. The association also
    publishes “Gardening From which?” and “Holiday which?” which deal with
    pregnancy restaurants, health, divorce and taxes.

    f) Codes of practice,
    Industries establish voluntary code of practice for the guidance of their members
    and the protection of consumer. The advertising standard authority is an example.
    Though the consumers are protected by trade description Act, the advertising
    standard authority maintains code of practice. It is described as example the
    Retail Trading Standard Association, The British Electro Technical Approval Board.

    3. OTHER MEANS OF SAFEGUARDING CONSUMERS


    Self Protection
    Consumer awareness while they consume goods or services
    The customers should be able to check all the particulars when goods or services
    supplied to them.
    Most retailers are prepared to correct genuine mistakes

    3
    Commerce – Students’ Guide
    Department of Business and Computing

    Further, where genuinely faulty goods are concerned the retailer will probably
    have little trouble in obtaining the refund from manufacturer.

    4 Prepared By: Emmanuel George

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