Challenges facing consumers in the UK - Essay Example

? Application of Competition Law By: ID Email address Location Challenges Facing Consumers in the UK Consumers in the UK are often faced with a number of challenges. The challenges are due to a rise in energy prices, rise in housing, horse meat scandal, and unhealthy competition. Competition is the essence of life but more often, in competition, the market would always want to take advantage of consumers lest the consumers be protected from exploitation. This is why competition laws are instituted. Competition laws are about applying the law to ensure that there is an healthy competition between companies without interference with each other’s rights (Whish, & Bailey, 2012). The competition laws are also healthy because they protect the customer or consumers from harmful behaviors of ill mannered companies (Monti, 2007). Competition laws are fields of interests because they aid in creating a wide variety of choices for consumers that it widens consumers’ options, it encourages efficiency and enterprise, and it also helps in the reduction of prices and improvement of quality. Housing is a major setback to the citizens of UK. The value of houses is high for the common citizens. However, there are individuals and companies that have come up to set houses for rentals. These have created competition that is bringing competition. Competition helps in pushing for low prices that make goods and services accessible to all. This ensures that virtually everybody can get access to good housing thus an improvement in peoples’ livelihood (Cseres, 2005). In this respect, it so follows that for a company to get good market share, then it has to offer good rates for its products in the market. In a well regulated and competitive market, prices are lowered as opposed to a monopolized market where the prizes are pushed up regardless of the quality of products released in the market. This is good for consumers because they can meet their wants but also it is good for the growth of the economy because when many people can buy, the economy stabilizes (Buttigieg, 2009). This also encourages investments and it thus boosts business in general. Encouraging healthy competition in the market is also good because it ascertains the market of better quality. For companies to get good market share, they have to ensure that their products are of good quality. This is the one of the ways that a business can gain competitive advantage over their competitors. In this respect, better quality of goods and services could mean that companies would bring products that can last longer or serve their customers in a better way (Kokkoris, & Lianos, 2010). This could also mean better after-sale services, and a general friendly customer service. This would mean that customers are treated with respect and it also mean that customers are treated as ends in themselves but not as mere means of getting profits. Oil companies have been facing a number of challenges further transferring their costs and challenges to the final consumers. Putting competition laws into perspective also ensures that companies offer more choices to the market (Agnew, 1985). This means that companies would come with different options and different unique products which can meet the needs of their target market in an efficient way than the rest of the offers available in the market. Companies strive to meet these demands to command the market while offering better services with reasonable balanced prices (Zimmer, 2012). In order to maintain such standards as to deliver varied choices, a company has to be innovative so as to remain relevant to time and choices (Jones, & Sufrin, 2007). Innovation implies that companies constantly produce better products, their designs have to be improved, and products services and business techniques have to be appealing to the consumers (Henning-Bodewig, 2006). Better competition also helps in training business to remain relevant to the global economy and competitions. This gives them the stamina to hold longer in malty competitive atmospheres while still making profits (Rittenberg, et al, 2008). The above mentioned points are the key that makes one to gain interest in competition laws. The reinforcement of these laws enables one to contribute vividly to the growth of the economy and to the better livelihood of others. Biggest consumer issue in the UK at the moment is lack of protection on the payments made. This costs consumers huge losses, in most cases, consumers pay for the (Insurance) PPI claims without knowing. It is thus advisable for consumers to check if they made payments and their financial agreements they made on car finances, loans, and mortgage papers (Cobham, 2003). If one finds that the PPI was sold to them, then they are protected by law and a refund can be given to them upon the request of it at any time. In some cases when consumers buy goods with credit cards, they are not refunded in the event that something goes wrong. For instance, when a retailer refuses to replace an item that does not meet the needs of the consumer then the credit card providers should meet the cost of that item. Such cases are common in the UK. This is in accordance with Section 75 of the Credit Act of 1974. It has also been noted that most consumers in the UK and ignorant of their rights while buying (Crawford, 2013). It is a basic right of every consumer to take note that they ought to be aware of the Sale of Goods act 1979 that everything that one buy must be: of good quality that meets ones’ needs, 2) the goods must meet the description of the seller, 3) must be fit for the purpose for which it was bought. To the contrary, most consumers are not disclosed to these facts but the law requires that these basics are made known to consumers. In the findings of University Association (1895), often, when the goods are not the standard that a consumer expected, they are not often given refund for such items, but with the knowledge of one’s rights, one can easily claim a refund and under the intervention of the law, one can easily be refunded. People have fallen often been duped when they do online purchases. In the UK, there are instances when one buy goods online but what is delivered instead is not to the expected standards (Beck, & Earl, 2003). Sometimes the goods do not meet the descriptions I the advertisement. When one is faced with such a situation, one can return the goods within seven days and receive a full refund. In such a case, one is under the protection of what is known as Distance Selling Regulation. In the same vein when one is buying a second hand item, one is entailed to full information as though he is making purchase of a new item. In the UK, there are various complaints that consumers suffer. This paper exposes this issues and it gives the reasons as to why this is happening. The paper further presents how these issues can be handled by the law of competition. Expression of Research Skills To come up with the issues that affect consumers in the UK economy, there was an employment of both research methods, that is, qualitative and quantitative research method. To come up with the empirical data to verify the extent to which consumers are affected, the researcher had to capitalize on the numbers to come up with the statics through which conclusions could be made. It was evident from the numbers that most people did not get refund for goods that did not meet their needs. It was also apparent that most people did not know their consumer basic rights; they therefore kept quiet out of ignorance. Consumers who buy goods online are always duped and they do not know how to go about complains. People have also been sold to items whose description does not much those that were place in the advertisements. Some goods also are of low quality. These are issues that characterize the UK market and consumers are the victims who suffer the consequences of these injustices. According to the Great Britain’s findings 67% of consumers in the market had complains that they have been cheated by retailers and that they have lost faith in some manufacturers. However, Fordham Competition Law Institute, Hawk, B. E., & Fordham University argues that it is clear that some of the consumer suffer for lack of knowledge at a time when laws exist to protect consumers from fraudulent behaviors (2007). Quantitative research has also been utilized at different capacities to determine the demands of the market and how what can make consumers comfortable. The researchers have further used quantitative research methods to determine the preferences of consumers and how best to meet their needs. The gathered information has also been used by the researcher to determine the financial performance of investments. Such data collected are reliably used to make sound decisions on what to do to make investments more productive. Through this method (quantitative), it one can present data that are logical to people thus enabling one to make presentations and present proposal that make sense to people thus adopting the recommendations of the research. The research that investigates competition and reasons why there are consumer issues in the UK, also utilized qualitative research method. The major reason for using this method was to find out the motives of investors and businesses. This method investigated why competition in important to an economy and why consumers suffer in the UK. Through this method, the researcher was able to establish that most consumers suffered because of mere ignorance of their rights while they could otherwise be safe from exploitation. The research also helped to establish the advantages of encouraging competition in an economy. This method capitalized on interviews where the researcher got the opportunity to interact with the feelings and attitude of the affected people. The research also involved the review of other peoples work. The combination of both of the research methods helped the researcher to come up with concrete information which has been vital in establishing and formulating the laws of competition. Personal attributes that enables one to make a success in competition law one requires a wide range of understanding. First, one has to have a broad understanding and knowledge of the nature and trends of the market. With such knowledge and understanding, it becomes easy for one to propose or enact laws that are friendly both to the consumers and companies. Such an understanding is not only helpful to consumers and companies but also to the economy of the nation. Experience that one has gathered over time in market research and on consumer issues in the UK makes one more prepared to work in competition law. With the experience, one would use the first hand information to execute his duties without errors. One also has to be firm in executing duties. Since the business world is full of fraudulent people who are ready to manipulate even the authorities at the expense of others, one in authority has to be firm in discharging duties without favors and fear. For success in any endeavor where people are, one has to be a team player. This is an attribute that helps one to coordinate people and motivate them to perform to their best. This is the spirit that enables one to delegate duties to people and inspires them to achievement. This attribute also helps one to attach value to every team member because everybody in the team is valuable an important. The ability to communicate well is also important to ones success. How one communicates issues is of immense importance. It is through communication that one puts forth the intension and the motives of the firm. It is through communication that issues are made clear and clarity achieved. Therefore the attribute of good communication skills is of importance. Finally, confidence and courage is of value also. One ought to have the courage to resist leniency when a company bridges the law and one has to have to confidence to execute the necessary measure as per the law that has been contravened. The courage to condemn a wrong that has been done ranks one as an authority that has the stamina to stand in for the law and ethics of work. These attributed combined together assures one of success in the competition law. These attributes have been exercised before in various fields of endeavors but most remarkably, the attribute of courage and communication was once manifested at the work place. This come up at a time when the company was about to collapse due to poor management. An opportunity presented itself where the company was to be sold illegally. Without the fear of contradiction, there was a confrontation of the ill mannered manger and with clear giving of directions, a comprehension communication was given to all employees and a petition was filed in the court to impeach the manager. Under the new management guided by ethical principles, the company stood and it ranks as one of the best performing companies in the UK. References Agnew, J. H. (1985). Competition law. London: Allen & Unwin. Beck, J., & Earl, M. (2003). Key issues in secondary education: Introductory readings. London [u.a.: Continuum. Buttigieg, E. (2009). Competition law: Safeguarding the consumer interest : a comparative analysis of US antitrust law and EC competition law. Alphen aan den Rijn, the Netherlands: Kluwer Law International. Cobham, D. (2003). The Making of Monetary Policy in the UK, 1975-2000. Chichester: John Wiley & Sons. Crawford, S. P. (2013). Captive audience: The telecom industry and monopoly power in the new gilded age. 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Nyak, New York: Flatworld Knowledge. University Association. (1895). Progress. New York: University Association. Whish, R., & Bailey, D. (2012). Competition law. Oxford [etc.: Oxford University Press. Zimmer, D. (2012). The Goals of Competition Law. Cheltenham: Edward Elgar Pub. Read More